We are happy to report that charitable gifts are still tax-deductible for donors who itemize. The new tax law has lowered the tax rates for many individuals, which may increase your discretionary funds for philanthropy. That’s the good news. However, far fewer people will qualify to itemize their deductions. The standard deduction nearly doubled to $12,000 for single filers, and $24,000 for married couples. You will be able to itemize—and therefore deduct your charitable gifts—only when your deductions exceed these levels.
Note: The 2020 CARES Act (Coronavirus Aid, Relief, and Economic Security Act) allows for a federal tax deduction of up to $300, for donations made in cash, even if you are not itemizing your deductions.