The Internal Revenue Service is highlighting a special tax provision that allows more people to deduct donations to qualifying charities on their 2021 federal income tax return. This pandemic-related provision allows married couples filing jointly to deduct up to $600 in cash donations and up to $300 in donations for individual taxpayers.
Under the temporary law, taxpayers don’t need to itemize deductions on their tax returns to take advantage of this, which creates tax-favorable donation options not normally available to about 90% of tax filers. Ordinarily, people who choose to take the standard deduction cannot claim a deduction for their charitable contributions. But this special provision permits them to claim a limited deduction on their 2021 federal income tax returns for cash contributions made to qualifying charitable organizations by year’s end, Dec. 31, 2021.
Make an impact on our community and profession now with your donation to the Indianapolis Bar Foundation. You can make your online donation securely and easily at indybar.org/donate!•