Can You Deduct Charitable Gifts With the Standard Deduction?

Tax deductions reduce the amount of income subject to taxation, lowering an individual’s overall tax liability by allowing taxpayers to subtract certain expenses from their gross income. This article clarifies how charitable contributions interact with the standard deduction, a common area of inquiry for many taxpayers.

Understanding Standard and Itemized Deductions

Taxpayers have two primary methods for reducing their taxable income: taking the standard deduction or itemizing their deductions. The standard deduction is a fixed dollar amount that taxpayers can subtract from their adjusted gross income. This amount varies based on filing status, age, and whether the taxpayer is blind. For instance, in 2024, the standard deduction is $14,600 for single filers and $29,200 for those married filing jointly.

Conversely, itemized deductions allow taxpayers to deduct specific eligible expenses, such as state and local taxes, mortgage interest, and medical expenses exceeding a certain percentage of adjusted gross income. Charitable contributions traditionally fall under itemized deductions. Taxpayers must choose between claiming the standard deduction or itemizing; they cannot utilize both. The decision hinges on which method provides the larger deduction, ultimately resulting in a lower tax bill.

Deducting Charitable Contributions with the Standard Deduction

Historically, charitable contributions were only deductible if a taxpayer itemized deductions on Schedule A of Form 1040, meaning those taking the standard deduction received no tax benefit for charitable giving. The Tax Cuts and Jobs Act of 2017 significantly increased standard deduction amounts, leading to fewer taxpayers itemizing.

A temporary exception was introduced during the COVID-19 pandemic through the CARES Act, creating a “universal charitable deduction” for non-itemizers. For the 2020 tax year, single filers could deduct up to $300 in cash contributions, while married couples filing jointly could deduct up to $600. This provision was extended into 2021, maintaining the same limits for cash donations to qualifying public charities. This temporary measure applied specifically to cash contributions and excluded donations to donor-advised funds or supporting organizations.

This temporary provision expired at the end of 2021. Consequently, for tax years 2022 and beyond, taxpayers who take the standard deduction cannot deduct charitable contributions on their federal income tax return. To receive a tax benefit for charitable gifts, taxpayers must have itemized deductions that collectively exceed their applicable standard deduction amount. Contributions must be made to eligible organizations, primarily those recognized by the IRS as 501(c)(3) entities, which are organized for religious, charitable, educational, scientific, or literary purposes.

Required Documentation for Charitable Contributions

Maintaining accurate records for all charitable contributions is important, regardless of whether the taxpayer ultimately itemizes or takes the standard deduction. Proper documentation is necessary to substantiate any claimed deduction. The specific requirements for documentation vary depending on the type and amount of the contribution.

For cash contributions, taxpayers must keep records such as bank statements, canceled checks, or credit card statements. For any single cash contribution of $250 or more, a written acknowledgment from the charity is required. This acknowledgment must include the cash contribution amount and state if any goods or services were provided in return. If so, their good faith estimate of value must be included, as only the amount exceeding this value is deductible.

For non-cash contributions, such as property, a written acknowledgment from the charity is also required, describing the donated property. If the value of a non-cash contribution or group of similar items exceeds $500, taxpayers must file IRS Form 8283, Noncash Charitable Contributions. For larger non-cash donations over $5,000, a qualified appraisal prepared by a qualified appraiser is necessary, with even stricter reporting for contributions exceeding $500,000. The written acknowledgment from the charity must be contemporaneous, meaning it must be received by the donor by the earlier of the tax return filing date or its due date (including extensions).