WASHINGTON - The Internal Revenue Service today reminded taxpayers that a special tax provision will allow more Americans to easily deduct up to $ 600 in donations to qualified charities on their 2021 federal tax return.

Generally, people who choose to take the standard deduction cannot claim a deduction for their charitable contributions. But a temporary change in the law now allows them to claim a limited deduction on their 2021 federal tax returns for cash donations made to qualified charities. Nearly nine out of 10 taxpayers now take the standard deduction and could possibly qualify.

Under this provision, individual taxpayers, including married individuals filing separately, can claim a deduction of up to $ 300 for cash donations made to qualifying charities during 2021. The maximum deduction increases to $ 600 for married individuals who file joint returns.

Included in the Coronavirus Aid, Relief and Economic Security Act (CARES), enacted in March 2020, a more limited version of this temporary tax benefit originally only applied to tax year 2020. The Taxpayer Certainty and Relief Act Disaster Tax Tax of the Year 2020, enacted last December, was generally extended through the end of 2021.

Cash donations include those made by check, credit card, or debit card, as well as amounts incurred by an individual for unreimbursed out-of-pocket expenses in connection with their volunteer services to a qualified charity. Cash donations do not include the value of volunteer services, valuables, household items, or other property.

The IRS reminds taxpayers to make sure to donate to a recognized charity. To receive a deduction, taxpayers must donate to a qualified charity. To check the status of a charity, they can use the search for tax-exempt organizations from the IRS.

Cash donations to most charities qualify. But contributions made to supporting organizations or to establishing or maintaining a donor-advised fund do not qualify. Donations carried over from prior years do not qualify, nor do donations to most private foundations and most cash donations to remaining charitable trusts.

In general, a donor-advised fund is a fund or account maintained by a charity in which a donor can, as a donor, advise the fund on how to distribute or invest the amounts contributed by the donor and held in the fund. A supporting organization is a charity that carries out its exempt purposes by supporting other exempt organizations, generally other public charities.

Keep good records

There are special record keeping rules for any taxpayer claiming a charitable contribution deduction. Typically this includes obtaining an acknowledgment letter from the charity before filing a return and keeping a canceled check or credit card receipt for cash donations.

For details on recordkeeping rules to justify donations to charities, see the Publication 526, Charitable Contributions, available on IRS.gov.

Reminder for families about the Child Tax Credit

In addition to the special charitable contribution deduction, the IRS also encourages employers to help spread the word about Child Tax Credit advance payments as they have direct access to many employees and individuals who receive this credit. In particular, remind low-income workers, especially those who normally do not file returns, that the deadline to register for these payments is now November 15, 2021. More information on the Child Tax Credit Advance it is available on IRS.gov.

For more information on other coronavirus-related tax aids, visit IRS.gov/coronavirus.