SAN FRANCISCO – If you donate cash to charity before the end of 2021, you can take advantage of extensive tax benefits approved under the CARES (Coronavirus Aid, Relief, and Economic Security) law.
This includes deductions of up to $ 300 for individuals and $ 600 for married couples who made cash donations to qualifying charities in 2021, the IRS said.
Normally, people who choose the standard deduction – 9 out of 10 taxpayers, according to IRS estimates – are not able to claim donations for an additional deduction. But under the CARES law, contributions to charities until the end of the year will allow taxpayers to receive more money.
The benefit only applies to cash donations made in 2021, and donations made to most charities are eligible, according to the IRS.
Here are some examples of eligible charitable contributions:
- Churches, synagogues, temples, mosques and other religious organizations
- Federal, state and local governments, if your contribution is only for public purposes (for example, a donation to reduce public debt or maintain a public park)
- Non-profit schools and hospitals
- The Salvation Army, American Red Cross, CARE, Goodwill Industries, United Way, Boy Scouts of America, Girl Scouts of America, Boys and Girls Clubs of America, etc.
- Veterans groups
- Expenses paid for a student living with you sponsored by a qualified organization
- Reimbursable expenses when you serve a qualified organization as a volunteer
The IRS reminds taxpayers to keep good records of your donations if you plan to claim a deduction. “Usually this includes obtaining an acknowledgment letter from the charity before completing a return and keeping a void check or credit card receipt for cash contributions. “the IRS said.
There are also changes in 2021 for taxpayers that detail their deductions and corporations that donate to charity. For more information, see the IRS website.
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