charitable givingWith the kickoff of the giving season, many people will be donating to charitable organizations. Taxpayers may be able to deduct donations to tax-exempt organizations on their tax returns. Here are some important reminders for those donating this year.

Expanded Tax Benefits for Charitable Giving

This year, taxpayers can claim a limited deduction on their 2021 federal income tax returns for cash contributions made to qualifying charitable organizations, even if they don’t itemize their deductions.

Taxpayers and married individuals filing separate returns can claim a deduction of up to $300 for cash contributions to qualifying charities during 2021. The maximum deduction is $600 for married individuals filing joint returns.

Qualified Charitable Distributions

Taxpayers age 70 ½ or older can make a qualified charitable distribution up to $100,000 directly from their IRA, other than a SEP or SIMPLE IRA, to a qualified charitable organization. A qualifying deduction may also count toward the taxpayer’s required minimum distribution requirement for the year.

Cash Contributions

Cash contributions include those made by check, credit card or debit card, as well as unreimbursed out-of-pocket expenses in connection with volunteer services to a qualifying charitable organization.

If you have any questions, reach out to your HW&Co. advisor or contact us today.


David Reape CPA

David M. Reape CPA
Director, Tax Services