Don’t have enough deductions to itemize but still like to contribute to your favorite charity? Because of a 2020 amendment to the CARES Act, you can take an above the line deduction for cash contributions to a public charity of up to $600 if married filing jointly, up to $300 for other filing statuses. This means you can deduct your charitable gift even if you don’t itemize.
This special rule applies only to cash contributions, not gifts of property. If you give over $250, you should obtain a contemporaneous written acknowledgment from the charity. This may be a simple thank you note outlining whether you received anything of value for your contribution, and if so, it must include a good faith estimate of the value of the goods or services you received. Contemporaneous means you should have the thank you note not later than when you file your return for 2021. The note may specify how much you donated, but it’s still a good idea to retain a copy of your cancelled check or credit card receipt in case you get audited.
Under IRS regulations, a charitable gift by check is deemed made in the year you place it in the mail with USPS or that you personally hand-deliver it to a representative of the charity if the check subsequently clears in the ordinary course. Make sure you date your check for 2021 and get it in the mail in the next three days. For credit card payments, the contribution is deemed made in the year of the charge, not the year you pay your credit card bill.
