The 2021 Charitable Contribution Rule for Standard Deductions

For the 2021 tax year, a temporary rule enacted as part of pandemic-related relief legislation allowed taxpayers who take the standard deduction to also deduct charitable contributions. This special provision was created to encourage charitable giving and provided a benefit typically reserved for those who itemize. This adjustment was a feature of the tax code for 2021 and has since expired.

The Special 2021 Deduction Rule

The rule for the 2021 tax year provided a deduction for cash contributions made to qualifying charities. For individuals with a filing status of single, married filing separately, head of household, or qualifying widow(er), the deduction was capped at $300. Married couples filing a joint return were able to deduct up to $600.

While itemized deductions are subtracted from Adjusted Gross Income (AGI) to determine taxable income, this temporary rule allowed those who do not itemize to also reduce their taxable income through their charitable giving.

Qualifying Organizations and Contributions

Only contributions made in cash, which includes payments by check, credit card, or debit card, were permissible. The rule explicitly excluded non-cash contributions, meaning donations of property like clothing, household goods, stocks, or other securities did not qualify for this particular tax benefit.

The recipient of the donation also had to be a qualified charitable organization as defined by the Internal Revenue Service. Generally, these are entities designated under the Internal Revenue Code. Taxpayers could verify an organization’s status using the IRS’s online Tax Exempt Organization Search tool.

Certain organizations were not eligible to receive contributions for this deduction. Donations made to donor-advised funds, certain private foundations, and charitable remainder trusts did not qualify under this temporary rule.

Claiming the Deduction and Recordkeeping

Taxpayers who took the standard deduction would report their qualifying cash contributions on their 2021 Form 1040. This line was specifically designated for this charitable deduction, separate from the itemized deductions reported on Schedule A.

For any cash contribution, taxpayers must maintain a reliable record, such as a canceled check, a bank or credit card statement, or a payroll deduction record. These records should clearly show the name of the charity, the date, and the amount of the contribution.

For any single contribution of $250 or more, the taxpayer must obtain and keep a contemporaneous written acknowledgment from the charitable organization. This document must state the amount of the cash contribution and whether the organization provided any goods or services in exchange for the gift.