2021 Charitable Contributions
Qualified Cash Charitable Contributions When Claiming the Standard Deduction
Generally, if you do not itemize deductions and claim the standard deduction you cannot claim any charitable contributions. However, for tax year 2021, you can claim up to $300 ($600 if married filing jointly) of cash contributions made to certain qualifying charitable organizations even if you claim the standard deduction.
Cash Charitable Contributions Defined
Cash charitable contributions include those made by cash, check, credit card or debit card as well as amounts incurred by an individual for unreimbursed out-of-pocket expenses in connection with the individual's volunteer services to a qualifying charitable organization.
Cash contributions do NOT include:
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Cryptocurrencies
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Volunteer services
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Securities such as stocks and mutual funds
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Household items or other donated property
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Amounts carried forward from prior years
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Amounts donated to most private foundations
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Amounts donated to most charitable remainder trusts
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Amounts to Donor-Advised Funds
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Amounts to Supporting Organizations
100% Limit Deduction for Cash Charitable Contributions for Those Who Itemize
For tax year 2021, if you itemize deductions and do not claim the standard deduction, you can elect to apply a 100% AGI (adjusted gross income) limit for cash contributions made to most charitable organizations. Cash contributions are defined above.
Recordkeeping
You must obtain an acknowledgment letter from the charity BEFORE filing your income tax return and you must retain cancelled checks and credit/debit card receipts for contributions of cash.
