Charitable Donations and Tax Deductions: What you need to know
BRUNSWICK COUNTY, NC (WWAY) — With New Year’s Eve two days away, many are rushing to donate items or make contributions before the end of the year.
WWAY spoke with a financial planner Friday about what you need to remember about charitable contributions for Tax Year 2023.
Tis’ the season of giving and taxes.
Lots of people making charitable gifts, which may qualify for a Federal Income Tax Deduction on your 2023 Return.
About 30% of annual giving occurs in December according to Consumer Reports and 10% of that total happens in the last three days of the year.
WWAY spoke with Jon Tait who is a Certified Financial Planner with ‘Signature Wealth Strategies’ in Leland.
He said this time of year, he sees plenty of people looking for ways to cut their tax bill.
“People wanting to make sure that they’ve capitalized on their gains and losses for the year so that they don’t end up with a tax bill that’s either unexpected or something that surprises them,” Tait said.
Tait said donations are a great way to do that. But said there are a few things to take into consideration before jumping in to help your charity of choice.
“Does it fit with your overall spending plan to give the amount that you’re giving? That’s usually what we’re helping people figure out,” Tait said.
Tait said once folks choose what organization they feel strongly about giving to, that’s when he steps in to help figure out how to alleviate their income tax situation.
He said it’s great people want to perform this act of kindness and that the tax benefits are an even stronger incentive to give. But plan accordingly.
“Once it is gone, ya know either out of what you’ve saved or what you’ve earned, you don’t get the chance to spend it twice,” Tait said. “So, is the amount you’re giving out today appropriate for your budget and your goal plan.”
The deadline to make your charitable donations is quickly approaching, it is December 31.
Tait said if you didn’t meet the timeframe to donate this year and still want to give, try making it your New Year’s resolution and start planning your financial plan for 2024.
