December 31, 2021 is the deadline for some favorable tax treatments of contributions to the Northern California Bluegrass Society, as certain opportunities will expire after this tax year. To help you take advantage of these rules, here is some useful tax planning information for 2021 only if you are interested in supporting local bluegrass music with tax-advantaged contributions.
The Northern California Bluegrass Society/Santa Cruz Bluegrass Society is an official Internal Revenue Code Section 501(c)(3) organization that accepts tax-deductible contributions.
Charitable Deduction Without Itemizing
For the tax year ending on December 31, 2021, it is possible to deduct cash gifts up to $300 for an individual or $600 for a married couple filing jointly, even if the taxpayer(s) do not itemize deductions — that is, the 90% of taxpayers who take the standard deduction. Gifts must be made by check, credit card or debit card to a qualified 501(c)(3) charity. Volunteers who have unreimbursed out-of-pocket expenses will also qualify for this deduction.
Higher Limit For Contributions
Gifts to charities like the NCBS/SCBS usually have deduction limits of 60% of a donor’s adjusted gross income, but in 2021 (only) the limit has been temporarily raised to 100% of AGI. In addition, donors who contribute more than the limit may carry the balance of the deduction forward for up to five years after the year of the gift.
Deadline
To take advantage of these tax provisions, your contribution must be made before December 31, 2021.