As the end of the year approaches, many taxpayers are looking for smart ways to lower their tax burden. Charitable giving in November and December is not only a powerful way to support causes you care about, but it’s also a savvy move to save on taxes. With the clock ticking on 2024, there’s no better time to make your donations count—both for your favorite nonprofit and for your wallet.
Here’s what you need to know to take full advantage of the tax benefits of charitable giving:
1. Claim Valuable Deductions
Charitable contributions can reduce your taxable income when you itemize deductions. Donations to qualified organizations—whether in the form of cash, goods, or even appreciated assets like stocks—can provide significant tax savings.
Pro Tip: Keep proper documentation! For contributions over $250, you’ll need a receipt from the organization.
2. Use Appreciated Assets to Your Advantage
Instead of selling stocks or other assets and paying capital gains taxes, you can donate them directly to a charity. This allows you to avoid the capital gains tax entirely while claiming a deduction for the asset’s fair market value.
3. Qualified Charitable Distributions (QCDs)
If you’re age 70½ or older, consider making a Qualified Charitable Distribution (QCD) directly from your IRA. QCDs can satisfy your Required Minimum Distribution (RMD) and won’t count as taxable income. This is a win-win strategy that reduces your adjusted gross income while supporting your favorite cause.
4. Make Your Donations Count for 2024
Timing is everything. To claim deductions on your 2024 tax return, contributions must be made by December 31. Postmark your check or complete your online donation in time to meet this deadline.
Don’t wait until the last minute—December 31 is a hard cutoff for charitable deductions this tax year!
5. Double-Check Eligibility
Not all donations are tax-deductible. Contributions to political organizations, individuals, or certain crowdfunding campaigns won’t qualify. Be sure to verify the organization’s tax-exempt status on the IRS website.
Take Action Now!
The holiday season is a time for generosity, but don’t let the opportunity to save on your taxes slip by. At J.S. Tax Corporation, we specialize in helping individuals and businesses maximize their tax benefits. Whether you want to ensure you’re making the most of your charitable contributions or need a comprehensive year-end tax strategy, we’re here to help.
📅 Schedule a FREE consultation today to review your tax situation before the year ends:
Act fast—spots are filling up quickly, and the December 31 deadline is just around the corner. Don’t miss out on opportunities to save on your 2024 taxes. Let’s make this holiday season both generous and financially smart!
Your Partner in Year-End Tax Planning
At J.S. Tax Corporation, we’re dedicated to helping you keep more of your hard-earned money while supporting the causes that matter most to you. Contact us today and let’s start building a strategy that works for you.
Comentários