Little-Known Tips Can Increase Your Tax Refund
Food Donations Are Tax-Deductible
POSTED: 3:19 p.m. EST January 3, 2002
CLEVELAND -- The holidays have passed, and now it's time to gear up for the next big event -- tax season.
In this week's Betcha Didn't Know, On Your Side Troubleshooter Chris Caswell reported some little-known tips that could increase your refund.
There are some things that you did during the holiday season that may be tax-deductible.
"I think the thing to remember is to stay calm, stay relaxed and put your records together," said Mark Kuharcik of H & R Block.
Many people already know that giving a cash donation to their church or temple is tax deductible, but did you know that you can deduct food donations as well?
"If you're donating canned goods or a holiday turkey to a charity, you have to make sure you do it through an IRS-recognized charity," Kuharcik said.
Is volunteering your time tax-deductible?
"While there is no deduction given for the value of your time, there is for using your automobile," she said.
A person can write off 14 cents for every mile that they drive while volunteering. But it has to be to a recognized charity, such as Meals on Wheels.
Betcha Didn't Know that a fund-raiser or charity event that you attended can also be deducted.
"If it was a $25 event that cost your $150 to attend, you have the difference between the cost of that and the fair market value of that event," Kuharcik said. "The $125 would be deductible to you."
Gifts to a business colleague or a night out during the holidays can also be deductible.
"Holiday meals, basketball games, events such as that -- there's no problem with that as long as there is documentation as to who you went to the event with and the business purpose," Kuharcik said.
Experts said that the best way to keep track of everything is put all receipts in a folder and simply mark each event on a calendar. It's easier to do that than to try to remember specifics a year later, NewsChannel5 reported.
A person who purchased or refinanced a home in the last year and paid points can deduct that as well.
It is too late to give for last year's taxes, but it's not too late to start for this year, NewsChannel5 reported.
In this week's Betcha Didn't Know, On Your Side Troubleshooter Chris Caswell reported some little-known tips that could increase your refund.
There are some things that you did during the holiday season that may be tax-deductible.
"I think the thing to remember is to stay calm, stay relaxed and put your records together," said Mark Kuharcik of H & R Block.
Many people already know that giving a cash donation to their church or temple is tax deductible, but did you know that you can deduct food donations as well?
"If you're donating canned goods or a holiday turkey to a charity, you have to make sure you do it through an IRS-recognized charity," Kuharcik said.
Is volunteering your time tax-deductible?
"While there is no deduction given for the value of your time, there is for using your automobile," she said.
A person can write off 14 cents for every mile that they drive while volunteering. But it has to be to a recognized charity, such as Meals on Wheels.
Betcha Didn't Know that a fund-raiser or charity event that you attended can also be deducted.
"If it was a $25 event that cost your $150 to attend, you have the difference between the cost of that and the fair market value of that event," Kuharcik said. "The $125 would be deductible to you."
Gifts to a business colleague or a night out during the holidays can also be deductible.
"Holiday meals, basketball games, events such as that -- there's no problem with that as long as there is documentation as to who you went to the event with and the business purpose," Kuharcik said.
Experts said that the best way to keep track of everything is put all receipts in a folder and simply mark each event on a calendar. It's easier to do that than to try to remember specifics a year later, NewsChannel5 reported.
A person who purchased or refinanced a home in the last year and paid points can deduct that as well.
It is too late to give for last year's taxes, but it's not too late to start for this year, NewsChannel5 reported.
Previous Stories:
- November 4, 2001: Web Site Shows How Levies Will Affect Taxes
- April 13, 2001: How Should Married People File Taxes?
- April 10, 2001: Seniors Confused With Tax Forms Can Get Help
- April 9, 2001: Americans Admit To Cheating On Taxes
- April 2, 2001: Procrastinators Can Get Free Tax Help
- March 29, 2001: Moving Expenses Can Be Tax-Deductible
- March 28, 2001: Donating To 401-K Is Good For Taxes
- March 26, 2001: Refinancing Home May Affect Tax Return
- March 23, 2001: Sick Of The Forms? File Taxes Online
- March 22, 2001: Do-It-Yourself Tax Software Not For Everyone
- March 21, 2001: Unemployed People Should Still File Taxes
- March 5, 2001: Homeowners Could Get Extra Tax Break
- February 7, 2001: All You Need To Know About Taxes And More
- February 6, 2001: Tips For Getting Your Taxes Done Quickly
- January 10, 2001: File Your Ohio Taxes Electronically
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