by Joe Bollig
KANSAS CITY, Kan. — Maybe you intended to give a little more to help your parish rebound from last year’s craziness, but . . .
It’s easy to fall behind, or to be distracted from your best intentions.
You can still catch up or make good, but you don’t have much time. Thanks to a change in the tax laws, individuals can deduct up to $300 in cash donations this year. However, you must make the donation before Dec. 31.
With the enactment of the 2017 tax law, the standard deduction was increased so much that most people were no longer able to itemize deductions, which included charitable donations. To encourage charitable donations, the 2020 CARES Act gave single filers and married joint filers a $300 charitable deduction in addition to the standard deduction.
This tax provision was extended in 2021 with a few changes. In 2021, married couples filing jointly may make a $600 charitable donation, and the deduction in 2021 will be a below-the-line deduction (deducted after calculating AGI, adjusted gross income) instead of an above-the-line deduction like it was in 2020.
This donation will reduce your tax bill.
You can’t take this additional deduction if you itemize, since your actual contributions are already being deducted when you itemize. This deduction will be a line item on your Form 1040.