Save Taxes with Last Minute Charity Donations

It’s not too late to get a tax deduction on this year’s taxes. You have until Janurary 31 to make any charitable donations which can be claimed as deductions on your tax return. Donations must be made to qualified charities in order to receive a tax deduction.

Donations you made to a political candidate are not eligible for tax deductions.  Clothing, cars, and other items donated to charity may be deducted. You may deduct the fair market value of these items. If you make a donation of $250 or more (in dollars or goods), be sure you get written acknowledgment from the charity or you may have difficulty using it as a deduction.

Looking for a charity to give to this year? The IRS lets you search for charitable organizations.

Or, here are a few we recommend:

National Public Radio

Greenpeace

Go spread goodwill, help your fellow man, and save on your taxes too.

Tags: car, charity, deductions, donations, greenpeace, IRS, national public radio, non profit, npr, Tax Tips

Last Minute Tax-Savers

Trying to save those last minute dollars on your tax return? With the end of the year rapidly approaching, most of you probably think there is little left you can do . Well guess what? You’re wrong! Here are a few last minute tips to help you save on tax day.


Charity
Thinking of giving money to a charity? By advancing next years charitable donations, or even increasing this year’s gifts, will save you a bundle on your tax return.
70 or older? Did you know that you can take up to $100,000 from your IRA without having to report that amount as gross income? Sweet!
Credit card donations will be deductible this year too, even if you don’t pay the bill until 2009.

Get more for your buck
By making early payments on bills not due until January (such as mortgage), you will also save yourself on your return. The only downside is that you can’t then claim that amount in the next year.

Curb your losses
We know that the market sucks right now. But that is good news for your taxes. Any money you may have lost in the market will off-set the gains you may have made in other areas, ultimately saving you.

Watch your gains
There are few of us this year that have experienced a gain in our portfolios, but if you fall into that category of the lucky, it is important to keep an eye on what you have made. Some of us in the lower tax brackets have to meet a certain amount of gains before you are taxed but the trick is to remain in the same tax bracket. Make too much and you could find yourself having to pay a higher percentage because you have slid up in the economic scale.

So, hey…do what you can to save those precious few dollars. Who knows when the market will come back. Best to be prepared!

Tags: capital gains, charitable donations, charity, credit card donation, deductible, gross income, IRA, mortgage, stock market, stock portfolio, tax bracket, tax-savers