Below is one simple tax tip you can do each year to reduce the amount of tax you pay ( or increase the amount your are refunded each year). If you did not do this in 2017 for the 2018 tax season, you may want to do this in 2018 in anticipation of the 2019 tax season. Let consider this simple tax planning strategy.
DO NOT DUMP YOUR CLOTHES , HOUSEHOLD ITEMS AND OTHER THINGS YOU OWN – GIVE THEM TO AN IRS APPROVED CHARITY. Assuming the things you own are in good condition 🙂 (and even if they are not, please let the charity decide), DONATE anything you no longer use or want to an IRS approved charity and get a receipt or an acknowledgement. So many of us have purchased items year after year, and the old ones we no longer use. We kid ourselves that we will use them again, but they are just sitting in the closet. All through-out the year, we buy and buy, during the thanksgiving season, we buy and buy, during the Christmas season, we buy and buy. SO WHERE IS THE STUFF YOU HAD BEFORE? ADVICE – During November and December each year, please systematically plan and offload all unnecessary, old and unused items to an IRS approved charity. You don’t really need them :). Also, remember most things you donate, are deductible if you itemize, even giving food to a food pantry counts. So does travel and parking for your volunteer work for a charitable organization.
The above suggestion is a tax planning tip, and is to your benefit if you itemize your deductions. Also, If you anticipate that certain approved IRS deductions when totaled will exceed the standard deduction (an annual approved exempt amount) then you should itemize. The standard deduction for single taxpayers and married couples filing separately is $6,500 in 2018, up from $6,350 in 2017; for married couples filing jointly, the standard deduction is $13,000, up from $12,700 in the prior year; and for heads of households, the standard deduction is $9,550 for 2018, up from $9,350. Note – based on new legislation, these amounts will significantly change for the 2019 tax season.
For more information on good tax planning tips and for free consultations, please contact Mabstac, LLC (wedo-taxes.com).