![]() That means someone who was philanthropically minded could donate enough this year to “wipe out their entire tax bill,” said Cari Weston, director for tax practice and ethics at the American Institute of Certified Public Accountants. (The 50 percent rule still applies to noncash contributions.) (After that, the maximum deduction is scheduled to revert to 50 percent of income.) But the CARES Act temporarily increased that limit to 100 percent of income, for 2020 the December law extended it for 2021. Under the 2017 tax law, donors who itemize can deduct cash donations of up to 60 percent of their income, through 2025. People who do itemize their deductions can get an even bigger benefit from charitable contributions in 2021. (For 2021, it’s $12,550 for single filers and $25,100 for married couples filing jointly.) For 2020, the standard deduction is $12,400 for single filers and $24,800 for married couples filing jointly. The 2017 law roughly doubled the standard deduction, and abolished some itemized deductions. But because of changes to the federal tax code made in 2017 through the Tax Cuts and Jobs Act, most taxpayers take the standard deduction. Typically, you can deduct charitable donations only if you itemize your personal deductions, rather than taking the standard deduction. ![]() (The limit for 2020 was $300 per return, not per person.) The measure also increased the maximum amount that married couples can deduct to $600. The December legislation continued, just for 2021, a $300 charitable deduction for filers who don’t itemize deductions on their tax returns.
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