Ordinarily, if you choose to claim the standard deduction, you cannot deduct your charitable contributions. Good news though, if you don’t itemize deductions for 2021, you may deduct up to $300 ($600 if MFJ) on your 2021 tax return for cash contributions made to most charitable organizations.
If it’s better for you to itemize deductions, you can elect to apply a 100%-of-AGI deduction limit for cash contributions made to most charitable organizations during 2021. Without this election, the usual percentage limit applies (normally 60%), and the nondeductible amount carries over up to five years. We can discuss which AGI limit is best for you based on your specific facts and circumstances.
Remember to obtain an acknowledgment letter from the charity before filing your return and retain a canceled check or credit card receipt for contributions of cash.
This article carries no official authority, and its contents should not be acted upon without professional advice. For more information about this topic, please contact our office.