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People often justify certain behaviors on the tax deductibility of activities such as student loan interest, mortgage interest, and charitable donations. However, all those deductions are worth exactly nothing if you are like most people and take the standard deduction. Plan your tax year in advance and lump donations from two years into one. You’ll increase the probability that for one year you will get some benefit for your generosity.
This can be tough if your charity or faith based organization expects continuous donations throughout the year or has a holiday drive. If possible, time end of the year contributions to occur on January 1st. That next year, give them your donation in December. They'll get the same amount of money at virtually the same time, but you'll get a bigger deduction. Nothing like using Uncle Sam's money to support your causes and if the charity gets the same amount and you pay less taxes, everybody wins.
To understand how you can get a bigger benefit for donating to your favorite charity, read Gift Appreciated Stock and Cut Your Taxes.
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