Getting the most from your tax returns in the New Year
Monday, Dec. 26th, 2016
NORTH AUGUSTA, S.C. (WRDW/WAGT) - Many of us will take our children's old toys to Goodwill this week to make room for new toys and to get a last minute tax deduction before the New Year. There are several other steps you can take this week to beef up your return.
Consider donating appreciated earnings on your stocks if you had a good year. "The advantage of that not only do you get a reduction for the gift of that stock but you also don't have to pay on the gain you have, so its like a double tax deduction," said Will Rogers, ChFC, CFP Financial Advisor, with Ameriprise Financial Services, Inc.
If you are a senior, over the age of 70, and have a required ira distribution then you should also consider making a donation. "If you take that distribution for yourself it's taxable but if you have your financial institution send that distribution straight to charity then that can be excluded from income," Rogers said. There are two great advantages to donating from your IRA. "Here's the big thing with the IRA going to charity it might reduce the amount your being taxed for social security income and it might also reduce your medicare premiums," Rogers said. The money you send to charity from your IRA is excluded from your income which also means it comes off of your tax returns.
Rogers recommends consulting with your tax advisor.