Tax tips for the holidays

The holiday season is typically seen as a time for generosity. Whether giving presents to loved ones or donating to charitable causes, people tend to be more charitable in this wonderful time of year. If the spirit of the holidays isn’t enough motivation for people to give, then the effect that charitable giving and many others have on their income tax returns in the New Year is another. The Internal Revenue Service (IRS) offers American taxpayers a number of tax tips for the season of giving.

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First off, taxpayers should aim to contribute to qualified charities. Their donation must reach the charity by the 31st of December to be counted as an itemized charitable deduction on their tax returns. Taxpayers should also keep a record of their donations that would be deducted from their returns, regardless of the amount or cost, and take note of what items they can deduct.

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Taxpayers should also take account of what they buy that might be tax deductible; there are many factors that affect the timing of a tax refund. While the IRS issues most of them in less than 21 days after receiving a tax return, it may take longer if the tax return requires additional review.

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The end of the year is often seen as the ideal time to prepare tax returns ahead of the busy tax season. Seeking assistance from reputable companies that assist in tax preparations can help taxpayers, both businesses and individuals, receive the tax benefits they are entitled to.

Learn more tax tips by visiting this Karliner Tax Services Facebook page.