Only if you are itemizing. Charitable donations are itemized deductions so the donations you made in 2020 will only reduce your AGI if you are itemizing deductions. There is a special provision for tax year 2020 that allows taxpayers that use the standard deduction to deduct up to $300 per tax return for CASH charitable donations in addition to the standard deduction. The donations would need to have been made in 2020 however.
The IRA deduction allows you to take a deduction that will reduce AGI if you make an IRA contribution by 05/17/21. All other deductions would have need to have been made during the tax year 2020.
For any Traditional IRA deduction, you must have earned income. If you do, there are a couple of possibilities. If you (and/or your jointly-filing spouse) didn't contribute to an employer-sponsored or self-employed retirement plan like a 401(k), your entire Traditional IRA contribution is deductible.
But if you (and/or your jointly-filing spouse) did contribute to an employer-sponsored or self-employed retirement plan in 2020, the amount you can deduct depends on your tax filing status and modified adjusted gross income (MAGI).
If your MAGI is:
- Below the phase-out range-your entire contribution is deductible.
- Above the phase-out range-you can't deduct anything.
- Within the phase-out range-you can make a partial deduction (we'll calculate this for you).
Here are the MAGI phase-out ranges for tax year 2020 if you were covered by a retirement plan at work:
- Single, head of household, or married filing separately (not living with spouse): The phase-out range is $65,000 – $75,000
- Married filing jointly or qualified widow(er): The phase-out range is $104,000 – $124,000
- Married filing separately (living with spouse): The phase-out range is $0 – $10,000
If you weren't covered by another retirement plan at work, but your spouse was, and you're:
- Filing jointly, the phase-out range is $196,000 – $206,000
- Filing separately, the phase-out range is $0 – $10,000
Related Information:
Traditional IRA contributions are an above-the-line deduction and may directly reduce your reported wages, reducing your taxable income. For some incomes, this might allow you to qualify for other deductions and credits due to a lower adjusted gross income (AGI).
If you (or your spouse, if filing a joint tax return) are covered by an employer-sponsored retirement plan, there's a phase-out range. Depending on your income, you may only deduct part or even none of the IRA contribution.
Roth IRA contributions aren't deductible. IRA FAQs - Contributions - IRS - If you do make an IRA contribution, it is entered in the Deductions and Credits section, under Retirement and Investments, Traditional IRA contributions.
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