We’re getting close to the end of the year and as everyone does their year end tax planning, it’s important to remember that not all “last minute tax tips” work for everyone. It’s important to analyze your particular tax situation before blindly following these ideas – RJ Weiss shares with us why you might want to wait until January 1st, 2011 to make those charitable donations.
Now that December is here, prepare yourself for Christmas music, crowded malls, and of course, the hundreds of personal finance articles about “Year-End Tax Planning.”
Many of these articles do serve a purpose. However, the majority, do more harm than good.
A common topic among articles about year-end tax planning is the deduction of charitable contributions. What many taxpayers don’t understand is that charitable contributions are only deductible if you itemize your deductions, which only makes sense for about 25% of taxpayers.
The purpose of this article is to discuss how you still might be able to benefit from charitable contributions, even if you don’t plan on itemizing this year. In order to do that, let’s review what deductions are.
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