Can I Take a Charity Deduction With the Standard Deduction?

Taxpayers who give to charity can lower their taxable income by deducting these contributions. This requires forgoing the standard deduction and instead itemizing deductions on Schedule A of Form 1040. The standard deduction is a fixed dollar amount that taxpayers can subtract from their adjusted gross income, while itemizing involves summing up various deductible expenses. The choice depends on whether your total itemized deductions exceed the standard deduction amount for your filing status.

The Status of the Non-Itemizer Charitable Deduction

The provision that allowed taxpayers taking the standard deduction to also deduct a limited amount for charitable contributions is no longer available. This deduction, sometimes called the non-itemizer charitable deduction, expired and was not available for the 2022 tax year or subsequent years. Taxpayers filing their returns for 2023 and 2024 cannot claim a charitable deduction unless they itemize.

This deduction was a temporary measure introduced as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act to encourage giving during the pandemic. For the 2020 and 2021 tax years, it allowed taxpayers who take the standard deduction to get a tax benefit for their contributions without having to itemize. The provision was not extended, and while there have been legislative proposals to restore it, none have been signed into law.

Rules for the Deduction When It Was Available

During the years it was active, the rules for the non-itemizer deduction were specific. For the 2020 tax year, an individual could deduct up to $300 for qualified cash contributions. This limit applied to the tax return, meaning both single filers and married couples filing jointly were capped at a $300 deduction. For the 2021 tax year, the law was modified for joint filers.

While the limit for single filers remained at $300, married couples filing a joint return could deduct up to $600. The deduction was strictly limited to contributions made by cash, which included payments by check, credit card, or electronic funds transfer. Donations of property and contributions to certain organizations like donor-advised funds did not qualify.

Substantiation and Record-Keeping Requirements

To claim the deduction for the years it was available, taxpayers were required to maintain proper records. For any cash contribution, a taxpayer needed to keep a reliable record, such as a canceled check or a bank statement, that shows the name of the charitable organization, the contribution date, and the amount. For any single contribution of $250 or more, the documentation requirements were more stringent.

The taxpayer was responsible for obtaining a contemporaneous written acknowledgment from the charity before filing their tax return. This document had to state the amount of the cash donation and whether the charity provided any goods or services in exchange for the gift. If the donor received a benefit, they could only deduct the amount of their contribution that exceeded the value of the benefit received.

How to Claim the Deduction on Your Tax Return

For those filing or amending a return for a year when the deduction was permitted, the process involved a specific line on the tax form. Taxpayers who took the standard deduction would report their qualifying charitable contributions directly on their Form 1040 or Form 1040-SR. This was considered an “above-the-line” deduction for 2020, meaning it reduced adjusted gross income. For the 2021 tax year, the deduction was taken after calculating adjusted gross income and entered on a specific line of the Form 1040.