It’s the Season of Giving! And what better way to get into the Holiday Spirit than by giving a cash contribution to your favorite charitable organization. Not only are you supporting their mission but you’ll be able to deduct the amount on your tax return.
For 2021, the IRS has increased the maximum amount of cash contributions that can be deducted to $300 ($600 for Married Filing Jointly).
For individuals that itemize deductions, you can make qualified cash contributions limited to 100% of your Adjusted Gross Income (AGI) which is an increase from 60% in previous years.
Contributions can be made to qualified charitable organizations such as churches, charities, nonprofit schools, etc. However if you’re unsure, confirm with the organization it has tax-exempt status with the IRS to qualify for the deduction.
And as a side note…make sure to keep those records or receipts, just in case!
If you have any questions, don’t hesitate to reach out to your Friendly CPA (Me- Danielle Robinson).
