While we cannot claim our cats for a tax deduction the Tax Men will allow expenditures for fostering cats. This will be great news for many of you for this year, and something to consider for next year.
Newton’s Purrspective – Tax Time
Yes, my friends – once again it is that time of year. Spring is in the air, but now people are stressed out over tax time. If only they could relax with some Cat Faeries toys and chill out in a Cat Faeries bed. Perhaps there is a human equivalent for “Calm and Serene Flower Essence”?
I know many wonder (only half in jest) if they can use Fluffy as a deduction. After all, you provide food, housing, and medical care (though there is little need for clothing or a college fund). And cats are family! Sadly, the IRS only accepts humans as deductions.
However, there is good news for cat foster parents. http://catingtonpost.com/if-you-foster-a-cat-you-can-claim-it-on-your-taxes/ You may be able to deduct expenses incurred fostering cats. Of course, there are a few rules you must follow.
Here are the two most important ones.
- First, you must file Form 1040 and itemize deductions.
- Second, the organization you foster for must be recognized by the IRS 501(c)(3) designation as a Not-for-Profit organization.
You may already know that you can deduct contributions to a qualified not-for-profit if you receive no services or merchandise in return. For example, donating money or a bag of cat food can be deducted. But, if you donate the same things and receive a t shirt in return you can no longer use the deduction. You bought the t shirt so it has become a business transaction.
You will need to keep your receipts and have documentation from the not-for-profit if your contribution is greater than $250.00. To avoid misunderstandings and other problems I recommend checking the IRS rules https://www.irs.gov/uac/top-eight-tax-tips-about-deducting-charitable-contributions and consulting with a tax expert. Sure, you can tell them (the tax experts, not the IRS) that a cat sent you.
Here is the basic situation. Let’s say you are fostering kittens for a properly registered not-for-profit shelter. Let’s also assume they do not provide any money or supplies.
You may be able to deduct the cost of carriers, food, kitty litter, veterinary bills etc. If you have a special area of your house used only for foster kittens you might even be able to deduct a portion of utilities. I know there are many good hearted people spending their own money to take care of kittens and cats in a home environment. Kittens, especially, are vulnerable to life threatening diseases when in stressful environments like shelters. As a former shelter kitten I want to thank all the foster parents out there. Your foster felines appreciate your efforts and we all hope you can get a little credit from the IRS.