I wrote about this at length, but the “Tax Cuts and Jobs Act” (aka “Republican tax reform”) created a charitable donation deduction crash, because of the increased standard deduction amounts, starting with the 2018 tax year.
Tax Reform Impact on Charitable Deductions Married Filing Jointly (& Surviving Spouses) In other words, all taxpayers are eligible for a standard deduction, and a small percentage will forego that in favor of itemizing deductions. Donations & Standard Deductions in 2022 & 2023įirst off, it’s worth noting that if you don’t itemize (like a large majority of the country), a donation receipt is not needed because you cannot deduct your donation if you claim the standard deduction.
To help clear up some of the confusion around what SHOULD be an easy topic, I decided to put together a little guide on deducting charitable donations and when you need proper documentation, such as a donation receipt or written acknowledgment. 2021 Update: with the American Rescue Plan Act, the universal donation deduction was increased to $600 for married filing jointly tax filers, remaining $300 for other filers, in 2021.Ģ022 Update: sadly, the universal tax donation deduction has expired for 2022 and beyond, unless it is retroactively extended by Congress.
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