Charitable Contributions if Standard Deduction Taken
Desktop · Written guide Content date 2 min read
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This article is for Tax Years 2020 and 2021 only
A provision in the Coronavirus Aid, Relief, and Economic Security (CARES) Act enacted in March, 2020 allows taxpayers who are taking the standard deduction on their 2020 tax return to include up to $300 as an above-the-line deduction on Form 1040 Line 10b for cash contributions to qualifying charities. The $300 limit is for all filing statuses.
The Taxpayer Certainty and Disaster Tax Relief Act enacted in December, 2020 extended this provision, increasing the limit to $600 for married taxpayers filing jointly and shifted the deduction to below-the-line on Form 1040 Line 12b.
Note: In Tax Processors Plus Desktop, this amount can either be entered in Schedule A or directly on the Form 1040 interactive screen, however if it is entered in both places the amount in Schedule A takes precedence. To avoid confusion, enter cash contributions in only one place.
Navigation steps in Tax Processors Plus Desktop depend on the tax year you are working in, whether 2021 or 2020.
2021
Entering the amount in Schedule A - To enter cash contributions in Schedule A in 2021 Tax Processors Plus Desktop, from the Main Menu of the tax return (Form 1040) select:
- Deductions
- Itemized Deductions (Schedule A)
- Gifts to Charity
- Cash Contributions
Entering an amount in the Deductions Menu - To enter cash contributions in the Deductions menu in 2021 Tax Processors Plus Desktop, from the Main Menu of the tax return (Form 1040) select:
- Deductions
- Charitable Contributions (if Standard Deduction Taken)
Entering the amount directly on the Form 1040 - To enter cash contributions directly on the form, select Line 12b on the Form 1040 interactive screen.
2020
Entering the amount in Schedule A - To enter cash contributions in Schedule A in 2020 Tax Processors Plus Desktop, from the Main Menu of the tax return (Form 1040) select:
- Itemized Deductions
- Gifts to Charity
- Cash Contributions
Entering the amount directly on Form 1040 - To enter cash contributions directly on the form, select Line 10b on the Form 1040 interactive screen.