Don’t Miss Your Last Chance to Maximize Cash Contributions Under the CARES ACT
As the end of the year approaches, you may be thinking about tax-smart ways to meet your charitable giving goals. This year, cash donations may offer one of the best tax-savings opportunities, thanks to certain provisions under the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020, which were extended for 2021.1 However, you’ll have to act fast since these provisions expire at year end.
To qualify under these special provisions, cash donations must be made by December 31. According to the IRS, cash contributions include those made by check, credit card, or debit card as well as unreimbursed out-of-pocket expenses incurred in connection with volunteer services to a qualifying charitable organization. Cash contributions don't include the value of volunteer services, securities, household items, or other property.
Keep in mind, to qualify for a tax deduction, charitable donations can only be made to tax-exempt organizations, as defined by section 501(c)(3) of the Internal Revenue Code. Since many nonprofits are not qualified tax-exempt organizations, it’s important to check an organization’s status before you donate. To determine if a charity is eligible to receive tax-deductible contributions under the IRS guidelines, access the IRS search tool here.
Always consult a tax professional before making decisions that could impact your tax exposure. To learn more about strategies that can help you pursue your tax planning and charitable giving goals, contact the office to schedule time to talk.
How Exercise Can Help Ease the Holiday Blues
While the holidays can be a time of joy and excitement, they can also trigger feelings of sadness, anxiety, loneliness, and depression. These feelings are commonly referred to as the “holiday blues.”
Feeling blue? You’re not alone.
No matter the underlying reason why you (or a loved one) may be experiencing the blues, it’s important to focus on self-care and getting the help you need to cope. Many people have found that adding exercise to their daily routines can help lessen or alleviate many of these symptoms. One reason is that physical activity is known to increase the brain’s endorphins or “feel good” hormones.
Exercise packs important short- and long-term benefits
Fortunately, working physical activity into your busy schedule doesn’t require a significant time commitment. For example, if you want to walk 30 minutes a day, combine that with time spent holiday shopping or running errands—or break it into three 10-minute walks on days when you’re really pressed for time. Remember, whether you choose to spend time walking, swimming, dancing, or weightlifting, exercise of any kind provides significant benefits for your body, mind, and mood.
Know where to get help
This information was written by KRW Creative Concepts, a non-affiliate of the broker-dealer.
Retire Wise | December 2021
December 22, 2021