Max out of pocket cash donations 201712/23/2023 ![]() This led to me accurately predicting that the 2017 tax reform bill would cause a cash crunch for 501(c)(3) charitable organizations. In my past life, I was a fundraiser for a non-profit organization and saw the importance of the donation tax deduction incentive (everyone wanted a receipt). With the tax reform that was enacted in 2017, the number of filers who itemize their taxes has dropped from about 40% to 11.4%, with everyone else claiming the new higher standard deduction. The long answer is “Yes, but you have to itemize your deductions on your return”. This is a common question I’ve seen since the new charitable donation was announced. ![]() Weren’t Charitable Donations Always Tax Deductible? Married Filing Jointly: $600 (up from $300 last year)Ĭash contributions carried forward from prior years do not qualify.Married Filing Separately: $300 (up from $150 last year).Single, Head of Household, Qualifying Widow(er): $300 (same as last year).To recap, the maximum charitable donation deduction amounts in 2021 for non-itemizers is: In order to remove any doubt for the 2021 tax year, Congress not only extended the charitable donation tax deduction as part of the 2nd COVID relief bill (The Taxpayer Certainty and Disaster Tax Relief Act of 2020), passed last December, but also specifically wrote into law that the maximum charitable contribution for “married filing jointly” tax returns would be increased to $600 in 2021 and $300 for “married filing separately” returns. There was confusion last year as to whether this new charitable tax deduction, which was originally created within the CARES Act as a COVID relief measure, was $300 per person or $300 per tax return (the correct answer was “per return”). In order to claim the deduction, you must get your cash donations in by the end of the year. The new universal charitable tax deduction for cash donations that was authorized for all tax filers (not just itemizers) last year was renewed for 2021 and increased for “married filing jointly” filers to $600 and from $150 to $300 for “married filing separately” filers.
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