Taxpayers who take the standard deduction on their federal return may still qualify for deductions or subtractions for charitable contributions on their state return.
The Tax Cuts & Jobs Act increased the standard deduction on the federal tax return, leading more taxpayers to take the standard deduction rather than itemizing. These taxpayers will no longer deduct their charitable contributions on their federal return. However, Colorado is one of many states that allows taxpayers to subtract charitable contributions on their Colorado return when they were not able to deduct them on their federal return.
There are rules and restrictions to this subtraction, and similar subtractions exist and differ from state to state. Ensure that you either consult your state’s guidance or your tax professional.