If you are an active donator by making a charitable contribution and do NOT itemize, you’re going to want to read this!
On the 2021 tax return, if you take the standard deduction, you get to take up to a $300 charitable contribution tax deduction on your return per taxpayer.
So, if you are filing a married filing joint tax return you can take up to $600 as a tax deduction.
Be sure to get donation receipts to your tax preparer so that you are taking advantage of this tax deduction.
DOES THIS BENEFIT ME?
Don’t know if you itemize? Click here to find out! If you do itemize, you already take your charitable contributions, so this is not applicable to you.
If you don’t know if you take the standard deduction – grab your 2020 tax return. On the first page of Form 1040, Line 12 is where you will want to look. If that Line 12 says any of the following numbers
- Single or Married Filing Separately = $12,400
- Married Filing Jointly or Qualifying Widow = $24,800
- Head of Household = $18,650
- Taxpayers over 65 or Blind receive an additional $1,300 standard deduction for married taxpayers and $1,650 for single or head of household taxpayers
If one of those numbers, in accordance with your filing status, is on Line 12, then you take the standard deduction.
This means you may benefit from this charitable contribution deduction!
HOW DO I TAKE ADVANTAGE OF THE CHARITABLE CONTRIBUTION DEDUCTION?
If you’ve donated to a qualifying charitable organization with a check, cash, credit or debit card then you can claim this “above-the-line” deduction.
This does not include any donated securities, household items, or other property.
You must have an actual receipt or acknowledgment letter from the charity stating that you have not received any goods or services for this contribution. You also need to retain a canceled check or card receipt.
You will provide these records to your tax preparer to take the deduction. As a reminder, you must retain your tax records even after the return is filed. For more details on recordkeeping for charitable contributions, click here!
Even if you have a professional preparing your return, it’s important to stay up-to-date on the tax laws to make sure you’re maximizing your tax savings!
Stay informed this tax season with tax tips from the Better Than Yesterday blog!
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