By Rich Patterson
A few years ago, my tax advisor, Ken DeKock, gave me a tip that has saved my family taxes and enabled us to increase giving to nonprofits.
DeKock knew we made contribution to many nonprofits annually, but they didn’t total enough to justify itemizing on our Federal tax form. He suggested that we switch to a system of giving donations every other year. It works.
We now make double contributions in even number years, but few gifts in odd years. In even years, we give in January and December so donations are nearly a full year apart, but fall into the same tax year. This enables Ken to itemize our tax return that year. In odd years, we use the standard deduction. Averaged over two years, our beneficiaries receive as much money as if we gave the same amount each year.
This system helps us save taxes every other year, and we’ve used the extra money to expand our giving. ◊
Editor’s note: A special thanks to donors who contribute to OWAA’s funds. December brought monetary gifts from generous donors; view the article here.
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A simple way to save taxes and increase charitable giving
