Many people are interested in making tax deductible contributions to local charities. It’s the best of both worlds. They get to give money back and give for a good cause, but they also get the thanking and the backing of the federal government. They are allowed to write off the money. That means that while the money goes to the charities it is now considered money that cannot be taxed by the government. This means that there overall taxable income goes down. This is a brilliant idea by the federal government to encourage Americans to help each other in time of need and know that it is really only a benefit to you.

The way this works is that there is a children’s charity out there that you give money to. That charity is worth your time and you give 500 dollars to them, then later on in the year you give the same amount of $500 dollars. This means that when it’s time for taxes you can claim a $1000 dollars to the charity. You will need forms and proof of that money and there is a some charities you cannot go through to get this. However, you won’t need to worry too much as it’s easy to claim. So if you were making 45,000 a year and the government said it was going to tax you on every penny(which doesn’t often happen but we’ll pretend for arguments sake) then you could now only be taxed on $44,000. This could land you in a very different tax bracket. So if you are interested in giving to the charity know that it could save you a considerable amount of money. However that shouldn’t be the only reason you are doing it and giving back. The truth is that there are plenty of really good charities out there and they help people and that should be your only motive for giving. Otherwise it’s not worth it just for the tax break.