Although the holiday spirit is often overrun by the idea of decorations and trendy gifts, the season offers the perfect opportunity to give and receive at the same time.
Rather than fighting through crowds of angry shoppers for gifts your loved ones may want to return later anyway, consider making tax-deductible contributions to a favorite charity instead. There are qualifying charities for nearly any interest, ranging from wildlife causes to medically related foundations, schools to homeless shelters. If you feel it is a worthy cause, it stands to reason that other people probably do to. The group you want to donate to should be able to tell you whether your contributions would be tax-deductible and if they can’t the IRS can.
Also, cleaning out your closets and attics for charity can lead to tax deductions. The vast majority of organizations that accept these kinds of contributions will be more than happy to sign an inventory for your tax records. Making it easier still, most tax preparation software has an IRS-approved value chart of just about every conceivable item you could want to donate, particularly clothes. You get spring-cleaning done early and save your self some money come tax time.
As long as donations are made by the 31st of December they can be claimed as deductions on the current years takes.
What better gift to yourself for the holidays than to give and receive.