The IRS Makes the Charitable Contribution Deduction Available to More Taxpayers

No one wants to think about taxes during the holiday season. This is a wonderful time to learn about a deduction available to all individuals for the 2020 and 2021 tax years. As we make our way to all the stores this shopping season, we are welcomed by the different charities requesting a donation. It is a promising idea to keep track of what you donate and remember every penny counts. Many charities take credit/debit card donations as well as checks. The IRS enacted a new deduction to encourage us to make charitable donations. In the past, we could only take a deduction if we itemized. However, for 2020 taxes and 2021 taxes, there is a deduction of up to $300 (2020 taxes) for single and married filing joint returns separate from the standard deduction.

How Does it work?

This tax deduction allows for our taxable income to be reduced by $300 if we make charitable contributions at or above this amount. For 2021 taxes, this amount is for married filing joint returns to $600. This tax deduction does not sound like a lot of money, but it can make a difference in your refund or the amount you may owe. Please consider being charitable and keep track of what you donate; it helps the charitable organization and you.

Make sure you research the charity before donating to ensure they are a tax-exempt organization. There is an excellent tool available to help you in your research. If you do an internet search for “Tax Exempt Organization Search,” you will find a complete database of organizations that qualify for the deduction. This special deduction is only available for the 2020- and 2021-income tax years. So to get in on the tax deduction, you must donate by 12 31 2021. Cash contributions are those paid by check, credit, or debit cards.

Another Way to Benefit from the New Deduction Rules

There is another way to donate that will help your pocket. We here at Fabulous TAX & Accounting, LLC are giving a $10.00 credit for services to all clients (new and returning). So all you need to do is bring in either four nonperishable items for the Village of Andover Blessing Box (toiletries included) OR two winter weather clothing items for the Village of Andover Giving Tree (including hats, gloves, scarf, coat, etc.). If you have any questions, please do not hesitate to call us.

We wish you the Happiest and Healthiest of Holidays and a Blessed & Prosperous New Year!

Our office is happy to help guide you through any questions you may have. Use the links below to view our website, check out the services we offer, get a quote, or contact us. If you enjoyed this post, we welcome comments at the end of this page. You can also join our mailing list (below) to get updates, tax tips, and blog posts directly to your inbox.

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