Taxes make our eyes glaze over too
but sometimes it pays to know a little bit about them so we can make smart financial decisions…or, at least tell our tax guys how to make smart financial decisions.
What is itemization?
The IRS gives every American about a $9,300 standard deduction. If you can come up with more than $9,300 in deductions, you can save the amount of taxes you pay to Uncle Sam.
For example, if Peggy paid $4,500 in medical expenses and $5,100 in college tuition in a fiscal year, it would be beneficial for her to itemize her deductions because they exceed the standard deductible amount, therefore saving her from having to pay more taxes.
What are deductible items?
Well, there are many. Some of the major ones are:
- Home ownership
- Medical expenses
- Car or boat registration
- College tuition
- State Sales tax
- and, you guessed it, charitable donations.
In fact, a run-of-the-mill bag of unwanted donated clothing can provide up to $200 in deductions (click here for a donation value guide).
Many Americans fail to add small charitable donation items to their taxes simply because it can be a headache to calculate and keep track of each donation.
Luckily, though, now there’s an app for that!
GiveIt users not only get their donation picked up for free at their door, they also get an email at the end of the year with a receipt detailing past donations. Users can also use the app to see previous donations at any time.
And because GiveIt only works with 501(c)(3) charities, all donations are tax deductible.
Now you know why people say using GiveIt is easier than throwing your stuff away.