Easter time to many marks the unofficial start to spring. With Easter Egg Hunts galore, here are some ways you can ensure your basket is full of tax write offs this year!
With tax day quickly approaching on April 15th, you may not be thinking about your taxes for the current year. But remember, taking time out during the year to keep your tax documents in order can save you time and stress come next tax season.
The Easter season offers a great opportunity to earn a few charitable deductions while doing good deeds. When planning for any charitable contribution for tax purposes, you should check one thing first: make sure the charity is current on the 501(c)3 status. Otherwise, you may not be able to claim your deduction on your taxes. Next, consider how you want to give: a monetary donation, donate supplies or materials, and the purpose of the donation – is it for a cause or just to help.
Here are some interesting ways that others have collected some deductions by doing good deeds during Easter season:
Easter Baskets – It’s a growing trend, but many people reach out to local hospitals, homeless family or domestic violence shelters, youth shelters - basically any organization that may have a need for their kids, and creating Easter baskets for the kids. Materials are sourced from the dollar store or dollar section of your local big box store or purchased premade. The cost for the materials are deductible, and if you use your car to deliver the donation, those miles can be deducted.
Easter Egg Hunt – Another popular option is holding an Easter Egg hunt for the groups mentioned above. One creative idea we’ve read is to use buckets from the dollar store, and the group brought permanent markers to let the kids decorate the buckets. While the kids were decorating, the volunteers hid the eggs. Eggs can be purchased online prefilled, or you can fill them yourself – sourced again from the dollar store. If you intend to hold a hunt of your own, keep track of your expenses and mileage, as both are deductible, and be sure to keep any related receipts.
Donate Food – Food banks and pantries always see an uptick in giving during this time. We read recently about a family who was foregoing their Easter dinner, and instead donating its contents or like items to the local food bank. Many churches or community outreach organizations have food pantries as well, these are another great option to contribute to. The value of the items donated can be deductible. Remember to get receipts or acknowledgement of the items.
Donate a car – The Easter Seals are one of many groups that solicit for used car donations. Donors who have a car they’ve been unable to sell will donate it for the charitable deduction. You’ll need a qualified appraisal, which most charities will provide, to claim the amount for tax purposes.
Donate money – Some people choose to give financially during the season. Those who donate money should remember that you need records of the donation, like canceled checks, receipts, and written documentation.
How or what do you plan to give this Easter season? Maybe the gift of knowledge? We provide helpful, valuable tax and lifestyle help on The Daily Deduction throughout the year. If you enjoyed this article or found it helpful, Like us on Facebook and follow us on Twitter to get more articles like this posted directly to your timeline or newsfeed! You can also share this with your social network or friends by clicking on the share buttons above or below.