As a reminder, taxpayers are eligible to take a deduction for monetary contributions made by cash, check or credit card to qualifying charities in 2021, regardless of whether you itemize your deductions. The maximum allowed deduction is $300 for single, married filing separately and head of household filers, and $600 for married filing jointly. This deduction only applies to monetary gifts; the deduction is not allowed for non-cash donated items. As of now, this deduction is not available for tax years after 2021, so take advantage of this deduction this year and save your receipts for any such contributions made. Documentation to be retained includes a bank record or a written communication from the qualified charitable organization containing the name of the organization, the amount, and the date of the contribution.
For more information, contact Diane Straka, CPA, Partner, Small Business Department, at email@example.com or 716.633.1373.