Tis the Season for Charitable Contributions
For the year 2021, the IRS has expanded certain charitable donations which may help you and your businesses increase your tax-deductible donation amount when donations are made by the end of the year. Don’t miss your chance to maximize your tax-deductible donations!
Check out the following provisions that apply for 2021:
- Deduction of up to $300 ($600 if MFJ) for cash donations by individuals who do not itemize if the donation(s) are made to certain qualifying charitable organizations.
- Increased adjusted gross income (AGI) limit (100%) for cash contributions by individuals who do itemize if the donation(s) are also made to certain qualifying charitable organizations. Individuals may elect to apply the 100% limit instead of the typical range of 20% to 60%.
- Increased C corporation limit to 25% from 10% for cash contributions. C corporations must elect the 25% limit as it is not automatically applied.
As always, make sure you’re on Santa’s NICE list by maintaining good recordkeeping! Good recordkeeping is required for individuals and businesses to claim charitable contribution deductions. This includes obtaining acknowledgment letters and cancelled checks, or credit card receipts, for cash contributions.
If you have questions concerning deductions for the year 2021, please call Susan at 630.523.5762. For more great tips on becoming a highly profitable business owner, check out Highpoint Advisory Services.
Happy Holidays and may 2022 be a prosperous year for you!