Tax Alert – Special Charitable Tax Benefits for 2021

Tax Alert – Special Charitable Tax Benefits for 2021

The pandemic has made the last couple of years difficult for many. We’ve suffered individual hardships, certain organizations have struggled, and the country is working to put the pieces back together. That’s why a special pandemic-related IRS tax provision has been put in place on December 13, 2021, for charitable donations. Now, individuals can deduct up to $300, and married couples $600, even if you don’t itemize your deductions.

That’s great news for 90% of Americans who file with the standard deduction. If you have been blessed in 2021, and can afford to donate to LSH, or one of the other charitable organizations listed by the IRS, you will be able to take advantage of this special tax provision. A few things you need to know:

1) Donations need to be made by December 31st if you want the tax deduction for 2021.

2) The donations must be made to a qualifying charitable organization, such as Lions Sight & Hearing Foundation of Southern California.

At a time when more people than ever are in need of services that nonprofits such as LSH provide, the unique challenges created by the pandemic have left many charitable organizations struggling to provide those services. LSH wants to help restore the gifts of sight & hearing for as many Californians in the 12 counties we serve as possible.

We have over 50% more applicants for hearing aids in 2021 than in previous years, so your donation will help in this critical time– and we hope that this special tax provision will be useful to you as your donation is to LSH!

So please, take the time to make a year-end donation to LSH, or another organization of your choice, before the end of this challenging year.

Here’s to a happier, healthier, and very prosperous new year!

Sincerely,

Randy Stein, CEO

Tax Alert Resources/Links

According to the IRS News Release:

“Under the temporary law, taxpayers don’t need to itemize deductions on their tax returns to take advantage of this, which creates tax-favorable donation options not normally available to about 90 percent of tax filers. Ordinarily, people who choose to take the standard deduction cannot claim a deduction for their charitable contributions. But this special provision permits them to claim a limited deduction on their 2021 federal income tax returns for cash contributions made to qualifying charitable organizations by year’s end, December 31, 2021.”

The news release goes onto state that “The pandemic has created unique challenges for tax-exempt organizations, and we want to make sure people don’t overlook this special tax deduction that’s available this year,” said Sunita Lough, IRS Commissioner of the Tax Exempt and Government Entities division. “Donations to qualifying charities can reduce people’s tax bill when they file in 2022.”

How To Qualify