This year was tough, pandemic tough, yet again. There are new incentives for donation related to pandemic relief that didn’t exist before and they only last until the end of the year! Go to http://communitygivingday.org/ to donate to one of our listed 501c3 organizations and gain the extra tax benefit for 2021, and help a lot of people in Mecosta County all at once!
According to USA TODAY and The Wall Street Journal,
“… Pandemic relief in Congress created a special but temporary break for giving money to a qualified charity that applies to people who do not itemize. “USA TODAY https://www.usatoday.com/story/money/taxes/2021/12/08/tax-break-charitable-donations-incentive/6416495001/
It looks like people that don’t itemize their taxes are getting a tax break for donating to nonprofits! Some of this existed last year for individuals, however (we are not tax experts) it looks like married couples gain some extra benefits as well in 2021. It’s important to remember these benefits are temporary, so why not donate a little extra this year and really experience the WIn-WIn of helping your local non-profits!
What if your Christmas gift wasn’t another gift that maybe your family member doesn’t need, but instead a donation in their name to a charity that is dear to their heart!
While as mentioned before, we are NOT tax experts, it might make sense to contact your accountant and get more information about these incentives that are NOT permanent, and could add to your bank account after taxes this year.
Some information provided by USA Today is that it must be a cash donation, not in-kind or otherwise to get the benefit. You will need a receipt and information to support the donation.
If you itemize your taxes, you get even bigger results from donating items, as well as cash.
It’s also good to know that pandemic-related relief in Washington temporarily eliminated some restrictions placed on how much money in cash contributions you can deduct, if you itemize, according to Lisa Greene-Lewis, a TurboTax CPA and tax expert.https://www.usatoday.com/story/money/taxes/2021/12/08/tax-break-charitable-donations-incentive/6416495001/
There are ways to get creative with donations, as well. Stocks and other investments can be donated which can help in offsetting other fees and taxes. It’s important to speak with your tax preparers, and accountants who know all of the latest rules. It would be a good idea to contact them and find out before these benefits expire at the end of the year.
The IRS offers an online search tool for finding out about an organization’s tax-exempt status at IRS.gov.
Paying attention now – and making any last-minute cash donations by Dec. 31 – can make a good deal of sense because many people who don’t itemize are looking at a tax benefit with a limited shelf life.https://www.usatoday.com/story/money/taxes/2021/12/08/tax-break-charitable-donations-incentive/6416495001/
You can go to http://communitygivingday.org/ to donate to your organizations and gain an extra benefit for 2021, and help a lot of people in Mecosta County at the same time!