Keeping Tabs On Money

One of the greatest parts of getting a raise or significant increase in your income is that you get to take home more money. However, it also means that your tax bill is going to get larger as well. If you want to keep your tax bill under control, you are going to need to work on reducing your taxable income. One way to do that is through charitable contributions. It is important to keep in mind that there are multiple ways that you can donate to charities and write it off on your taxes.

#1 Cash Contributions

To start off with, there is the most basic cash contributions. For this, you want to make sure that you are donating to a registered charity and to get a receipt for your cash donation. For your charitable contributions to give you a break on your taxes, you are going to want to make sure that you donate a sizeable amount to charity, in the realm of a couple of thousand of dollars.

Make sure that you take some time to research the charities that you want to donate to and make sure that they actually invest the money in the causes that they are designed to support.

#2 Small Donations

Next, you can increase your contributions to charity by donating items that you don't need any more that are still in good condition. Go through each room of your home, and gather up items that you don't need any more. As you gather them up, create a detailed inventory of each item and figure out the value of each item is. When you have all of your items together, donate them to a charity and have them sign off on your inventory list and give you a receipt for the value of the items that you donated.

#3 Large Donations

You can also donate big ticket items that you don't need anymore. For example, if you have an old car that you know you can only get a couple of thousands of dollars from, you can donate it to a charity and get a bigger write-off on your taxes.

Don't wait until the end of December to make all of your charitable donations. Research and donate money to charities that you believe in. Take time to go through your house, downsize unnecessary junk and cut your tax bill all at the same time. Take the next three months and use that time to make meaningful charity donations that will be impactful while also cutting down on your tax bill. For help with preparing all of your tax information, including information on your charitable donations, contact a company like Hough & Co CPA.