From the BlogSubscribe Now

Gifts to charity pay your taxes

 

 

When you start to prepare your federal tax return, you must not by any circumstance forget to count any of your gifts to which you gave to charity. Your attitude of charity can do more than just make you feel good for all the help you have given and provided to others. When the tax filing time arrives, your gifts will also be able to help you in areas regarding your taxes. Your gifts will be able to lower your tax bill since they may be of course deductible donations. There are many different types of ways to give. One of the most common is cash donations. In the Internal Revenue Service’s dictionary, cash does not just mean currency, but also amounts which are monetary and donated by check, credit card or cellphone texts. When you do donate this money or gifts, you need to expect and be ready to deal with IRS documentation rules. There is one other thing to remember which is your timing. Now your donations will count once you are able to file your return in the season of spring, but do not forget to make sure that all your charitable donations are to be made by Dec. 31 of the year before.
Now the charity rollover option is also a good strategy for those who may face limits on their donations which are based on their income. Most of the time, you will not be able to donate any amount that would exceed the 50 percent of your adjusted gross income. If and when the money were to go directly from the IRA to the charity, it would not count against that limit because it is not included in the filer’s gross income. Although this may seem spotless, there is in fact one drawback. This would be that such direct gifts will not be deductible by the donor himself. That unfortunately, might not exactly be that much of a disincentive though. Taxpayers would usually itemize to be able to claim any of the charitable deductions. It would be surprising to know that many taxpayers which are of older age, or the majority of filers of all ages, would actually choose to claim the standard deduction instead.

   

images from: buncee and funzine