Did you know that when you #donate good-quality used #clothing and household items to ClothingDonations.org, you are likely eligible for a #tax #deduction? You must determine the fair market value (FMV) of the items you donate, “based on desirability, use, condition, scarcity and market demand for that property,” says IRS Publication 561. In the case of clothing #donations, for example, FMV is based on the item’s condition and what a typical buyer would actually pay for clothing of that “age, condition, style and use.” Fortunately, many tax-preparation software applications include a #donation calculator. #LastMinuteTaxDeduction
Tag: financial
HSA Contributions Are Tax-Deductible
A health savings account (HSA) is a great way to lower #taxable #income while planning for health care events expected and unexpected. Many high-deductible plans including bronze and catastrophic plans purchased on the Health Insurance Marketplace are eligible for an HSA, and contributions offer an immediate tax deduction. Funds can be used to pay for medical expenses, and balances roll over indefinitely. For 2025, families can deduct up to $8,550 in contributions, and individuals can deduct up to $4,300. Contribute before the tax deadline to protect your health and your income! #LastMinuteTaxDeductions
Take Advantage of Small-Business Deductions
Small business owners can reduce their #tax liability legally by deducting a range of business-related expenses. Remember to deduct vehicle-related costs, travel expenses and purchases of equipment and supplies. “Generally, you can deduct any business expense that is both ordinary (common and accepted in your industry) and necessary (helpful and appropriate for your business),” TurboTax says. Depending on your situation, bad-debt deductions and employee expenses including salaries, bonuses, payroll taxes and benefits may be eligible for a #deduction, as is a home #office. #LastMinuteTaxDeductions
Contribute to an IRA Before April 15
Making a contribution to a traditional individual retirement account (IRA) is often tax-deductible for the year in which they are made — and they can be made through the tax filing deadline for that year (i.e., through April 15 for 2025 income tax returns). One can deduct the full amount of an IRA contribution if a workplace-based plan isn’t in place, or a partial amount based on adjusted gross income and filing status. You can contribute as much as you like to an IRA, of course, but the maximum permitted deduction for 2025 is $7,000 per year for persons under 50 and $8,000 for those 50 and over. #LastMinuteTaxDeductions