Benefits to Giving Back: It's Good for Others and Good for Your Taxes
Supporting the Lodi community doesn’t just benefit those on the receiving end, it benefits you, too. Whether you’re giving a lot or a little, whatever you can do makes a difference, and the holidays are a time to get into the giving spirit. There are events like Giving Tuesday (the Tuesday after Thanksgiving, 11/27/18), purchasing toys for kids, bringing food to shelters, and more. It feels really good knowing your money or your actions are supporting causes that you care about and as an added bonus, you donations to nonprofits also help when it comes to tax time. We asked a local expert, Daniela Reiswig at Professional Tax Solutions, to share a few ways acting charitably can measure up at tax time.
Giving back not only gives you a great sense of giving, it can also lower your taxable income if you itemize. Be sure to keep all of your receipts for tax time. After all, the less your paying in taxes, the more you have to spend around town later, whether that’s supporting local businesses, neighbors, or nonprofits.
For most taxpayers there is no donation limit on how much you can claim as a deduction. Unlike some other things, for most people there’s very few limit how much you can claim- yay!
Mileage can be deducted for your donation trips. If you’re really organized, you can even keep a record of your mileage to write off- who knew!
You can’t write off your time, but you can write off expenses associated with your time. So if you volunteer your time to ring bells for the Salvation Army that can’t be written off. However if you have to hire a babysitter to watch your kids during this time, that cost can be written off.
IRA Charitable rollovers offer tax benefits if you are over 70 ½ years of age. Bet you haven’t cared about your half birthday since you were a little kid! See you a specialist for more details on this.