NEW MEXICO (KRQE) – The Internal Revenue Service (IRS) is reminding New Mexicans they can use a special tax provision to lower their 2021 federal tax bill. The provision allows married couples filing jointly to deduct up to $600 if cash donations while individuals can deduct $300 if they donate cash to qualifying charity.
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The provision also allows limited deductions instead of having to itemize each donation on the return. Donations must be made by December 31. According to a news release from the IRS, cash contributions include those made by check, credit card or debit card as well as amounts incurred by an individual for unreimbursed out-of-pocket expenses in connection with their volunteer services to a qualifying charitable organization. The news release states that cash contributions don’t include the value of volunteer services, securities, household items or other property.
For more information, visit irs.gov/charities-non-profits/tax-exempt-organization-search.