Image From: yavdate from Getty Images/Canva Pro
Article By: Kelly Kirk-Xu & Emily Stevens
As the flowers bloom, the sun shines just a little bit longer, and the weather finally begins to warm up again, we all know what time is coming. Yes, with the early spring blossoms comes a great opportunity to purge your clutter. In other words, it’s spring cleaning time!
Spring cleaning is the perfect opportunity to gather your money masters and help them learn about decluttering, donations, gratitude, and giving. That isn’t all spring cleaning is good for, though. Did you know that those donations can actually bring you great benefits come tax season? Charitable donations can help you save money on taxes.
Yes, as you Marie Kondo your entire home and send the extra items to be donated, you could be cutting your tax bill. How does one get the most tax benefits out of their donations? Well, Walter the Vault is here to help you learn how.
There are many well-known tax-exempt organizations with locations all over the place, such as Habitat for Humanity, Goodwill, and the Salvation Army. If you have a specific organization you like to donate to, but don’t know if they fall under this category, give them a call and ask about it. There is also a tool to help with that known as the Tax Exempt Organization Search.
When you donate to these organizations, collect receipts. Save each and every one of them so you can easily record every donation. You may want to take pictures of the products to help determine the value of your donated items. There are limitations on what is eligible for tax benefits and what is not, so you will have to do your research. There is also a limit for how much you can claim under non-cash donations. You can check out the IRS website to find out this information. Some people choose to max out their donations in each of these categories to take full advantage of this opportunity – while simultaneously helping others!
This is also a great “teaching experience” for your kids to learn about, as well. You can ask them what items they’d like to donate from their personal collection. After, you can determine the value of each item and make a list. They can help contribute to your tax savings, as well!
Taxes are a more complex piece of the money mastering puzzle. Get your donation and tax receipts organized and let your mini money masters see you bask in the benefits of your spring-cleaning donations come tax season.