While you’re in a festive mood this holiday season, you may be able to decrease your tax bill for your donations made before the end of the year!
To receive a tax benefit for donations that you make in most years, you have to itemize. For 2021, Americans can get a tax benefit of up to $600 for donations they make without having to itemize!
Married Filing Joint: up to $600
Individual, Married Filing Separate: up to $300
Donations must be made by cash, check, or card; so you can’t count items or services that you donate. They also must be made to a qualified charity, so check the status on the IRS Tax Exempt Organization Search Tool (https://www.irs.gov/charities-non-profits/tax-exempt-organization-search) but most non-profit charitable organizations will qualify. Donations must be made between Jan 1st and Dec 31st, 2021.
You’ll also want to keep a record of your donation: keep a copy of the donation statement (or acknowledgement letter) from the charity.