1. Ray is an animal lover. She donated $300 to the local SPCA in May. Her husband Jim made a one-time donation of $250 to the same shelter for Ray’s birthday in June. How they should claim donation tax credit for maximum benefit. Taxable income of Penny and her husband is $90,000 individually.

The federal charitable tax-credit rate for 2021 is 15% for the first $200 donated. You can claim 29% on larger sums if your taxable income is up to $214,368. And, a special 33% rate can apply to your donations beyond the first $200 if your 2021 taxable income exceeds $214,368.