For those who don’t itemize ~  $300 above the line deduction for those who file a single return and $600 (new in 2021) for those filing jointly

If you take the standard deduction on your 2021 tax return (the one that you’ll file in 2022), you can again claim an “above-the-line” deduction of up to $600 ($300 for single filers, $600 for those filing jointly) for cash donations to Abe’s Garden you make this year.  Donations to donor advised funds and certain organizations that support charities are not deductible.  Normally, you have to itemize on Schedule A to get a tax break for charitable donations. In this case, though, it’s the other way around—if you itemize, you can’t take this new deduction.

For those who do itemize ~ cash gifts are again deductible up to 100% of your AGI

If you itemize on Schedule A of your tax return, you can claim a deduction for your charitable donations. The CARES Act lifts the 60% of AGI limit for cash donations made to Abe’s Garden through 2021 so that your total charitable deductions are deductible up to 100% of your AGI.  This means itemizers can deduct more of their charitable cash contributions this year, which will hopefully boost charitable giving. As with the new above-the-line deduction, donations to donor advised funds, supporting organizations, and private foundations don’t count.

Qualified Charitable Distribution from IRA still allowable

Those age 70½ and older may continue to use some, or all, of their RMD from an IRA to make contributions to Abe’s Garden.  This is still a qualified charitable distribution (QCD) and the amount of the QCD will be excluded from your income as in past years.

Disclaimer:  This information is not legal advice.  Please be sure to consult with a knowledgeable tax or financial advisor, or with your IRA administrator to ensure these transactions are executed correctly.