'Tis the season for giving...and lowering your tax bill at the same time!
The holiday season is also the season of giving…to family, friends, and special causes that are dear to our hearts. As you give this holiday season here are some helpful guidelines on charitable donations:
Many taxpayers are seeing their charitable donations have no direct tax benefit due to the increase standard deduction of $12,200 for single and $24,400 for married filing joint.
If your itemized deductions are close to the new standard deduction, consider being strategic with your charitable donation amounts and contribution years to help increase your itemized deductions. Contact us on how to make the new tax law work to your benefit.
Idaho has some great tax credits for charitable donations too!
Idaho gives additional tax credits for donations to Idaho educational organizations and youth and rehabilitation facilities. Popular organizations that qualify are The Arc, the Idaho Youth Ranch, and cash donations to Idaho schools. Check with us to see if any of your donations qualify.
Wait…the country club isn’t a “charitable organization”?
Not all donations qualify for deduction, and not all nonprofit organizations qualify either! The value of your time and service is not deductible, but the miles you drive as a volunteer are deductible. Donations to a public park facility is deductible but not contributions to a political organization.
Confused yet? We can help…just give a call!
Cayley J. Allen, CPA