MEMPHIS, Tenn. — We’re just getting into the Christmas season, so it may seem difficult to start planning for tax filing season.
However, filing in the spring means some preparation now.
IRS Spokesperson Mark Green said, “Taxpayers should review and gather documents now as part of their year-end tax planning. The important deadline of Dec. 31 is fast approaching and a little advance planning could save taxpayers time, stress and perhaps even money.”
Gifts to Charities – If taxpayers want to claim a deduction for gifts, they have to itemize.
Qualified charities- Taxpayers can only deduct gifts given to qualified charities. The IRS Select Check tool can help determine if the group is considered a qualified charity.
Monetary donations- Gifts of money include those made in cash or by check, electronic funds transfer, credit card and payroll deduction. You must have a bank record or a written statement from the charity to deduct any gift of money on your tax return. This is true regardless of the amount of the gift.
Annual Gift Tax Exclusion- Taxpayers can give as much as they want to anyone, even if they are not a relative.
In 2014, consumers generally could give up to $14,000 to anyone and the gift won’t be taxable.
Other tips from the IRS:
- Develop a record keeping system
- Consider a deduction for business miles
- Get the most out of your retirement accounts –Maximize contributions before the end of the year
- Don’t forget about moving expenses
- Save proof of mortgage interest and real estate taxes paid