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It’s the most wonderful time of the year! Sure, for most people the holidays are happy and full of pleasant surprises. But for others, the holidays are a terrible time filled with worry about how to pay bills and put food on the table. That’s why this is the perfect time to donate to charity. Not only will you feel good when you give to others, but you can also get some incredible tax breaks. Take a look at some of the best tax benefits you receive when you donate to charity.
1. Deduction against your income tax. When you give a gift to a qualified charitable organization, you can take a deduction against your income tax.
2. You can count the donation in the year you donated. If it’s December 31st and you put a check in the mail to your favorite charity, it counts for that year. All you have to do is mail a payment in order for it to count on the current year. Come April 15th, that could be a big benefit to you.
3. You don’t have to donate just cash. In fact, you can donate property, clothing, and other monetary things. When you donate anything other than cash, the actual cash value of the product you donated is used for your tax deduction.
When you donate, always remember to get a receipt and document what you donated. The IRS will want to see details and proof of your contribution, so take some time to get the proper documentation.
Giving to charity is a wonderful way to serve those in need. It doesn’t hurt that you can also help yourself when it comes to tax time as well. Take a look around your house, do a little balancing of the household budget, and see what you can come up with to donate to charity.
