Charitable contributions are one of the best tax-saving opportunities available. Not only does the charity benefit, but taxpayers enjoy tax savings by deducting part or all of their contributions on their tax returns. For 2021 income taxes, due on April 15, 2022, two special rules extend and expand the generous tax treatment for qualifying cash contributions made in 2021:
- You can deduct up to $300 if you’re single or married filing separately (or $600 if you’re married filing jointly) for cash contributions made to qualifying charities—even if you don’t itemize.
- If you do itemize, you can claim charitable contribution deductions for cash contributions up to 100% of your adjusted gross income (AGI).
These tax benefits will not apply after the 2021 tax year unless Congress amends the law, which as of Jan. 13, 2022, has not occurred.