IRS COVID benefits: How to get up to $600 tax deduction

Bay Area

SAN FRANCISCO (KRON) — If you make a cash donation to charity before the end of 2021, you can take advantage of expanded tax benefits approved under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

This includes deductions up to $600 for people who gave cash donations to qualifying charities during 2021, the IRS said.

Ordinarily, individuals who elect to take the standard deduction cannot claim a deduction for their charitable contributions.

The law now permits these individuals to claim a limited deduction on their 2021 federal income tax returns for cash contributions made to certain qualifying charitable organizations.

Nearly nine in 10 taxpayers now take the standard deduction and could potentially qualify to claim a limited deduction for cash contributions.

IRS

Individuals can claim up to a $300 deduction for the cash donation. Married individuals filing joint returns can claim up to $600.

The benefit applies only to cash donations made in 2021, and donations made to most charitable organizations qualify, according to the IRS.

Here are some examples of qualifying charitable contributions:

  • Churches, synagogues, temples, mosques, and other religious organizations
  • Federal, state, and local governments, if your contribution is solely for public purposes (for example, a gift to reduce the public debt or maintain a public park)
  • Nonprofit schools and hospitals
  • The Salvation Army, American Red Cross, CARE, Goodwill Industries, United Way, Boy Scouts of America, Girl Scouts of America, Boys and Girls Clubs of America, etc.
  • War veterans’ groups
  • Expenses paid for a student living with you, sponsored by a qualified organization
  • Out-of-pocket expenses when you serve a qualified organization as a volunteer

For more information, check the IRS website.

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