Even if you make a donation by credit card, you do not have to pay it off in 2020 to receive the tax deduction. Make these donations count on your taxes by donating by December 31st. If you volunteer at a qualified charitable organization, don’t forget that you can deduct your mileage (14 cents of every mile) driven for charitable service. You can help someone in need and reap the benefits of a tax deduction for non-cash and monetary donations donated to a qualified charitable organization. The holiday season is a great time to clean out your closets and household goods to give to those in need. TurboTax will ask you simple questions about your retirement contributions and automatically give you the Saver’s Credit based on your entries. You also don’t need to know how to claim the credit when you use TurboTax. Because it’s a credit, it will reduce the taxes you owe dollar-for-dollar. The Saver’s Credit is a little-known tax credit that lower to middle-income taxpayers can get just for contributing to their retirement. You may also be eligible for the Saver’s Credit worth up to $1,000 ($2,000 married filing jointly).
If you’re contributing to your company’s 401(k) and/or traditional IRA, you are lowering your taxable income now in addition to building your retirement stash. Have no fear - we’ve compiled a list of money moves you can make before December 31st to improve your tax picture. With tax season right around the corner, you may be wondering whether you paid enough taxes this year.
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