Give a Little. Decrease Your 2009 Taxes.
With 2009 coming to an end, many people are looking for ways to decrease their tax liability. A great way to do this is to make a contribution to a qualified charitable organization. It is the perfect time to clean out the closets to get rid of the old, and make room for the new.
You can donate clothes that do not fit or you do not wear anymore, furniture, jewelry, or even cars. For items with a value greater than $500, you must have proof of appraisal.
If you are in the holiday spirit you can provide money, gift cards, presents, and food to people in need. However, be sure to donate through a qualified organization. Ask for a receipt for everything you donate. And, be sure to save all of the receipts to account for all of your donations.
Keep in mind that you can only take advantage of the deductions if you choose to itemize your deductions, unless the charity qualifies for any state credits. In participating states, donations to certain charities qualify for a state tax credit. This credit is still applicable even if you choose to take the standard deduction.
The deadline is approaching. All contributions need to be completed before January 1, 2010 to apply to 2009 taxes. Credit card transactions are the exception! As long as the credit card transaction occurs before January 1, 2010, it counts toward 2009 taxes. It does not matter when the credit card bill is actually paid.
In conclusion, if you are planning to itemize your deductions, get in the charitable mood. You might as well donate before the year is over to a qualified organization, and decrease your tax liability.