If you love animals, assist the Humane Society of Macomb. With one donation, you’ll help us rescue homeless cats and dogs. In addition, you could claim your contribution as a tax deduction. Thanks to the CARES Act, there are great benefits for taxpayers in 2021.
What Is the Cares Act?
Many lawmakers in Washington passed a bill to help U.S citizens deal with the pandemic. It was created specifically to jump start the economy.
The CARES Act has changed slightly since it was introduced to the world. Discover how the 2021 extensions can reward you for your charitable contributions.
A $300 Deduction
If you help our cause and claim a standard deduction, you could get a $300 refund after you file your taxes. To qualify for this deduction, you must make a cash donation. This deduction doesn’t apply to product or property donations.
The $300-deduction covers each person individually, so more than one taxpayer can reap the same benefits. For example, if you make a donation with your partner, you’ll get a $600 refund instead of a $300 refund as a reward. This deduction only has one disadvantage; it won’t lower your adjusted gross income for 2021.
If you’ve made a donation to another cause in 2020, you’ll get a different deduction this year because the 2021 CARES Act has updated terms. For example, last year, the maximum deduction was $300 for all joint taxpayers, and the deduction lower their AGI.
A Deduction for Itemizers
There are general guidelines for all charitable donations. Before the CARES Act was introduced, all taxpayers who itemized their deductions could technically write off any donations that were made to a charity. You can still follow these steps in 2021. For more details, refer to the Schedule A section on your tax form.
In order to claim a Schedule A deduction, you’ll need proof of your donation. Typically, the IRS will require a receipt that acknowledges the amount of the contribution and details that describe the cause.
Charitable Contribution Limitations
Before you make a donation, you must understand the limitations that apply to the CARES Acts. Here are the key guidelines:
In 2020, the government suspended the 60 percent charitable deduction limitation temporary. This suspension has been extended; it only applies to qualified contributors who donate cash.
Throughout 2021, all individual taxpayers can proceed with any excess contributions that they have for up to five years. However, the new 100 percent deduction limitation is no longer valid beyond 2021.
Make a donation to the Humane Society of Macomb today. Your contribution will save homeless animals, and it will unlock a tax deduction too.