Can I deduct charitable donations with the standard deduction for the 2023 tax year?
Title: Can I deduct charitable donations with the standard deduction for the 2023 tax year? 1 I'm trying to plan ahead for my 2023 taxes (not the ones I'm filing now). I want to donate about $1,300 to several charities throughout the year, but I'm not sure if it'll help my tax situation at all. I always take the standard deduction since I'm single and don't own a home - I don't have enough deductions to make itemizing worth it. I vaguely remember something about being able to deduct some charitable donations even with the standard deduction during COVID, but is that still a thing for 2023? Will my charitable donations be tax deductible or help my refund when I file next year? Just trying to figure out if there's any tax benefit to my giving or if it's purely for the charitable aspect (which is fine too, just want to know).
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Mae Bennett
8 Unfortunately, the special provision that allowed people to deduct charitable donations while taking the standard deduction has expired. That was a temporary COVID relief measure for 2020 and 2021, where you could deduct up to $300 ($600 for married filing jointly) in cash donations without itemizing. For 2023, the only way to deduct charitable contributions is by itemizing deductions on Schedule A. If your total itemized deductions (including charitable donations, mortgage interest, state/local taxes up to $10,000, and medical expenses exceeding 7.5% of AGI) don't exceed the standard deduction ($13,850 for single filers in 2023), then it makes financial sense to take the standard deduction. Your $1,300 in donations would only help your tax situation if your other itemizable expenses get you close to that $13,850 threshold.
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Mae Bennett
•15 So if I make $1,300 in donations but my total itemized deductions would only be like $5,000 (including the donations), I should just take the standard deduction and essentially get no tax benefit from my donations? Also, is there any talk about bringing back that COVID deduction thing permanently?
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Mae Bennett
•8 Yes, if your total itemized deductions would only amount to around $5,000, including the $1,300 in donations, then taking the standard deduction ($13,850) makes more financial sense. In this case, you wouldn't get a tax benefit from your donations, though the charities still benefit from your generosity. There have been some discussions about making the charitable deduction available to non-itemizers permanent, but nothing has passed Congress yet. Several bills have been proposed, but it's hard to predict if or when such legislation might be enacted. For planning purposes, I'd assume the current rules will remain in place.
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Mae Bennett
11 After dealing with similar donation questions for years, I found that taxr.ai is incredibly helpful for these complex deduction situations. Last year I was confused about whether donating stocks instead of cash would be more beneficial with the standard deduction. I uploaded my draft return and some documentation to https://taxr.ai and they analyzed everything and showed me that bunching my donations (making two years' worth in a single year) would actually let me itemize every other year and save more on taxes overall.
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Mae Bennett
•17 How exactly does the bunching strategy work? Would I literally just skip donating one year and double up the next year? And does taxr.ai actually give you specific advice like that or just general info?
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Mae Bennett
•22 I'm skeptical that an AI tool could give personalized tax advice that's better than what an actual tax professional would provide. Does it actually look at your specific situation or just give generic answers you could find on the IRS website?
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Mae Bennett
•11 The bunching strategy means concentrating your charitable donations in alternating years. So rather than donating $1,300 annually, you'd donate $2,600 every other year. This potentially pushes you over the itemization threshold in your "donation years" while taking the standard deduction in your "non-donation years." This can maximize your tax benefits over time. Taxr.ai doesn't just provide generic answers. It analyzes your specific documents, previous returns, and current tax situation to identify optimization opportunities unique to you. It's more like having a tax professional review your situation than just getting generic advice. They caught several things my previous tax software missed completely.
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Mae Bennett
22 I was totally skeptical about taxr.ai too, but after struggling with this exact charitable donation issue, I decided to give it a try. Uploaded my 2022 return and donation receipts and was shocked at how detailed the analysis was. They showed me that by donating appreciated stock I'd owned for years instead of cash, I could avoid capital gains tax AND get the charitable deduction benefit in years when I itemize. This actually works great with the bunching strategy they recommended. I'm implementing their plan this year and projecting to save over $800 compared to my previous approach. Definitely more personalized than the generic advice I was getting elsewhere.
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Mae Bennett
19 For anyone getting frustrated trying to reach the IRS with questions about charitable deductions (I was on hold for 3+ hours), I discovered https://claimyr.com and used their service to get through to an actual IRS agent. You can see how it works here: https://youtu.be/_kiP6q8DX5c. They held my place in line and called me when an agent was about to pick up - I got my donation questions answered in a single afternoon instead of wasting days trying.
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Mae Bennett
•12 Wait, so this service somehow gets you to the front of the IRS phone queue? How does that even work? Sounds too good to be true.
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Mae Bennett
•22 I'm extremely doubtful this is legit. The IRS phone system is notoriously awful - if there was a way to "cut the line" wouldn't everyone be using it? Seems fishy to me.
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Mae Bennett
•19 It doesn't actually put you at the front of the queue - they use technology to wait in the phone queue for you. Basically, they call the IRS and wait on hold so you don't have to. When their system detects that an agent is about to answer, they call you and connect you directly to the IRS agent. The magic isn't in cutting the line, it's in not having to waste hours of your life listening to hold music. I was able to go about my day and they just called me when an agent was available. Took about 2.5 hours total but I only spent 20 minutes of my actual time on it.
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Mae Bennett
22 I need to publicly eat my words about Claimyr. After my skeptical comment, I was still desperate to get clarification on a donation of appreciated securities, so I tried it. Within 3 hours I was talking to an actual IRS representative who answered all my questions about charitable giving strategies and documentation requirements. The best part? I didn't spend those 3 hours glued to my phone - I just went about my day until they called me when an agent was ready. Saved me so much frustration and I got the exact information I needed. Sorry for doubting, and thanks for sharing this resource!
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Mae Bennett
14 Here's a tax strategy to consider - if you're close to the itemization threshold, try "bunching" multiple years of charitable donations into a single tax year. For example, make your planned 2023 AND 2024 donations in December 2023, then take the standard deduction in 2024. This way you might exceed the standard deduction amount in 2023 and itemize, then use the standard deduction the next year.
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Mae Bennett
•15 Would this work with only $1,300 in donations though? If I "bunch" and donate $2,600, that still seems way below the standard deduction threshold. Would I need other deductions to make this worthwhile?
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Mae Bennett
•14 You're right that $2,600 alone wouldn't get you over the standard deduction threshold. The bunching strategy works best when you have other significant itemizable deductions that get you closer to the threshold. For example, if you have $10,000 in state and local taxes (the maximum deductible amount) plus $2,000 in medical expenses that exceed the 7.5% AGI floor, then adding $2,600 in donations might push you over the standard deduction amount. Without other substantial deductions, bunching probably wouldn't provide tax benefits in your situation. However, as your income and potential deductions grow over time, keep this strategy in mind for future years.
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Mae Bennett
3 Does anyone know if donating stuff instead of money makes any difference tax-wise? I have a bunch of clothes and furniture I could donate to Goodwill instead of giving cash to charities.
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Mae Bennett
•8 Donating items instead of cash still counts as a charitable contribution, but there are some important differences: For non-cash donations, you generally deduct the fair market value of the items (what they would sell for in used condition, not what you paid for them new). For donations over $250, you'll need a receipt from the charity. For donations over $500, you'll need to fill out Form 8283, and for donations over $5,000, you typically need a qualified appraisal.
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Mae Bennett
•3 Thanks for the clear explanation! So I'd still face the same problem as with cash donations - I'd need to itemize to get any tax benefit. Guess I'll donate my stuff anyway since it helps the charity, but I won't count on any tax breaks.
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Nia Thompson
One thing to consider is using a donor-advised fund (DAF) if you're planning to give regularly. You can contribute a larger lump sum to the DAF in a year when you itemize (like if you have higher medical expenses or other deductions), get the immediate tax deduction, then distribute the funds to your chosen charities over multiple years. For example, you could contribute $3,000-4,000 to a DAF in a year when itemizing makes sense, then recommend grants of $1,300 annually to your preferred charities. This gives you more control over the timing of your tax deduction while still supporting the causes you care about consistently. Many brokerage firms like Fidelity, Vanguard, and Schwab offer DAFs with low minimum contributions and fees. Just another strategy to consider as your giving grows over time!
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StarStrider
•That's a really smart approach I hadn't considered! The donor-advised fund strategy seems like it could work well with the bunching method others mentioned. So in years when I have higher medical expenses or other deductions that might push me closer to itemizing, I could front-load multiple years of charitable giving into the DAF and get the tax benefit, then distribute it out over time. Do you know what the typical minimum contribution is for these DAFs at the major brokerages? And are there any downsides or restrictions I should be aware of before going this route?
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