Americans opened their hearts and wallets for another record-breaking Giving Tuesday. It's estimated that 35 million U.S. adults participated in 2021, with total gifts of $2.7 billion, a 9% increase from 2020.
While most aren't shelling out for tax purposes, they may not know there's a special write-off for their generosity, even if they don't itemize deductions on their federal return.
In response to the Covid-19 pandemic, Congress gave charities a boost in 2020 by offering Americans a tax incentive for cash gifts. Lawmakers extended the write-off for 2021.
Single filers can claim a deduction for cash donations up to $300 and married couples filing together may get up to $600 in 2021.
More from Invest in You: Holiday tipping guide 2021: Who to tip and how much to give 9 money moves to make before becoming your own boss Here's what you can do now to set yourself up for financial success in 2022