Tax deductions for charitable giving require documentation
How much did you donate to charity last year? Can you prove it? In order to take all the charitable contributions you are due on your taxes each year, you must provide documentation of the amount donated and to which organization. The rules vary based on the type of donation – cash, in-kind, property, securities, […]
Take advantage of deductions to reduce tax liability
Taxpayers can take advantage of two types of deductions. So-called “above-the-line” deductions reduce both your adjusted gross income (AGI) and your modified adjusted gross income (MAGI), while “itemized” deductions (i.e., below-the-line deductions) do not reduce either AGI or MAGI. Deductions that reduce your AGI (or MAGI) are particularly favorable because they not only reduce your […]