Find Out How To Get Bigger Tax Refund
Donations To Charities Can Get You Big Deduction
POSTED: 12:26 p.m. EDT April 9, 2002
CLEVELAND -- If getting complicated means a bigger tax refund, many people are willing to go that extra mile.
But are there hidden tax savings out there of which people are just not aware? NewsChannel5's Brad Harvey has the answer.
Unless you're a certified public accountant, "number crunching" probably doesn't appeal to you.
Lori Donovan said that she doesn't even attempt to mess with her taxes this time of year. She turns everything over to her CPA.
"He knows all those little things that change every year that there's no way I could keep up with on my own," she said.
And all those little things can add up into savings for many people.
"If the taxpayer can qualify for itemized deductions, it certainly helps them lower their tax situation rather than just taking the standard deduction," said Bob Soucek, a CPA.
If you're single, that means having to come up with more than $4,550 in deductions for the year in order to itemize your return.
If you're married, you'll need to come up with more than $7,600.
So what can you deduct? Soucek said that there are plenty of things, and donations to charities are at the top of the list.
"The non-cash things -- the Goodwill, the Salvation Army -- if they keep a good list of what they contribute, that can help lower their taxes," he said.
Donovan gives her money and time to the Big Brothers and Sisters of Green County.
"Any expense that I incur for that organization, whether it is taking a prospective donor out to lunch or mileage or items that my little sister might need, those are all tax-deductible," she said.
For years, she had no idea she could deduct such things.
Soucek also advised her on even bigger tax savings when her family purchased their new home.
"He reminded me that we should pay our points at closing rather than roll it into the mortgage," Donovan said. "There (are) so many different mortgages out there. He said because you can deduct those points at that time."
Donovan, who's a commercial realtor, said that tax-saving idea hadn't even occurred to her.
"We want to pay what we owe, but we don't want to pay a penny more," she said.
Another way to save on your taxes is by investing in a Roth individual retirement account instead of a regular IRA.
Also, what you pay in child-care services is deductible.
And if you're paying a lot in rent, consider home ownership as a great way to save on your taxes.
If you still have questions or concerns about filling out your taxes, visit NewsNet5's tax section.
But are there hidden tax savings out there of which people are just not aware? NewsChannel5's Brad Harvey has the answer.
Unless you're a certified public accountant, "number crunching" probably doesn't appeal to you.
Lori Donovan said that she doesn't even attempt to mess with her taxes this time of year. She turns everything over to her CPA.
"He knows all those little things that change every year that there's no way I could keep up with on my own," she said.
And all those little things can add up into savings for many people.
"If the taxpayer can qualify for itemized deductions, it certainly helps them lower their tax situation rather than just taking the standard deduction," said Bob Soucek, a CPA.
If you're single, that means having to come up with more than $4,550 in deductions for the year in order to itemize your return.
If you're married, you'll need to come up with more than $7,600.
So what can you deduct? Soucek said that there are plenty of things, and donations to charities are at the top of the list.
"The non-cash things -- the Goodwill, the Salvation Army -- if they keep a good list of what they contribute, that can help lower their taxes," he said.
Donovan gives her money and time to the Big Brothers and Sisters of Green County.
"Any expense that I incur for that organization, whether it is taking a prospective donor out to lunch or mileage or items that my little sister might need, those are all tax-deductible," she said.
For years, she had no idea she could deduct such things.
Soucek also advised her on even bigger tax savings when her family purchased their new home.
"He reminded me that we should pay our points at closing rather than roll it into the mortgage," Donovan said. "There (are) so many different mortgages out there. He said because you can deduct those points at that time."
Donovan, who's a commercial realtor, said that tax-saving idea hadn't even occurred to her.
"We want to pay what we owe, but we don't want to pay a penny more," she said.
Another way to save on your taxes is by investing in a Roth individual retirement account instead of a regular IRA.
Also, what you pay in child-care services is deductible.
And if you're paying a lot in rent, consider home ownership as a great way to save on your taxes.
If you still have questions or concerns about filling out your taxes, visit NewsNet5's tax section.
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- March 20, 2001: Unemployed People Should Still File Taxes
- March 15, 2001:
Need Help With Your Taxes? - March 5, 2001: Homeowners Could Get Extra Tax Break
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- February 5, 2001: Tips For Getting Your Taxes Done Quickly
- January 10, 2001: File Your Ohio Taxes Electronically
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