4 Easy Things You Can Do For Others, Before the End of the Year
Monday, December 13th, 2010 by Cass Chappell, CFP®
And get a Tax Deduction!
It really is better to give than receive. But how cool is it to do BOTH!?!?! Before January 1st gets here, you still have time to give to others AND receive a tax deduction.
Contribute $2000 to the Georgia 529 plan for your child’s education
There is no longer an income limit for parents, or grandparents, to receive a state income tax deduction for contributions up to $2000 per year. At the 6% tax bracket here in Georgia, that amounts to $120 in state income tax savings. Note: The contribution must be to the Georgia 529 plan in order to receive a Georgia state income tax deduction. This tip only applies to Georgia residents.
Donate clothes or other items to charity
Goodwill has locations all over town and they always make it easy to drop off your unwanted clothing. Make sure you get a receipt from them. You will need it for your taxes. There are also services that will come pick the clothing up from your home.
Accelerate future charitable cash contributions to this year
If you are considering making a cash donation to a charity in the future, consider doing it this year. You receive the tax deduction in the year that the contribution is made.
Add a little extra to your shopping cart at the grocery store
Many area Publix and Kroger stores make it very easy to give food to the needy. At the check-out line they will either have pre-packaged meals for the holidays that they will distribute for you or pledge cards of varying denominations that can be added to your bill. They will take care of the rest! Be sure to keep your grocery receipt as the dollar amount of your gift is tax deductible.
