Yet Another Tax Deduction You Don’t Want to Miss in 2015: a Different Kind of Charitable Gift

I might be preaching to the choir on this one, but hear me out: you’re not reading fluff about pop topics and relevant issues to connect with the real story at hand (which obviously is the coming tax return for 2015 you’re going to file), and you’re definitely smart enough to not fall for such an SEO blog tactic as this, because I’m doing no such thing.

Trust me: I have something for you here about tax deductions and tax returns you don’t know about regarding charitable gifts. So listen up. This will get interesting (and turn to page 57 for our hymnal today this Sunday).

So You Think You Know Everything There Is to Know About Charitable Gifts?

Think again. Yes, you know you’ll need some receipts for your tax deductions, itemized and proofed for your tax guy to look and go, “oh, yes, you did donate that playhouse for $10K, which cuts your taxable income down to whatever,” and that does make you feel pretty peachy.
What you didn’t know about your tax return is this: you can actually itemize much more than just monetary donations on your taxes. Pay close attention as you focus on that quick 2-hour tax return, because the simplest stuff could easily apply, resulting in an even bigger refund in your hands (or checking account).

Consider Cupcakes, for Example

Stay with me, choir. Please. Just follow my logic here. What many taxpayers don’t realize is that goods and dollar bills aren’t the only things you can itemize. There’s so much more you can deduct from your tax return that you don’t even realize, such as several out-of-pocket purchases that all by themselves wouldn’t account for anything unless they result in a donation of some kind. Like cupcakes.
Consider a charity fundraiser for church, for example. What if you baked some cupcakes for such a fundraiser? Can you deduct those cupcakes on your tax return? Of course! But how?
Simply put, the ingredients that made those cupcakes can be written off of your taxes, because those ingredients made the cupcakes, which were donations to a fundraiser. Do you follow? It makes perfect sense.

That’s One Sweet Tax Deduction

You’ll never get a toothache as well from this, not like these other issues on your 2015 tax return could do. That’s singing so sweet you could dance in the heavens with your cupcakes and reap the benefits of a beautiful tax refund.
Simply save your receipts for all your groceries, or at least the ones specifically related to what it takes to make any baked goods — or anything donated, for that matter. Whatever funds you use to create or make something that ends up donated can be written off on your taxes. Remember that. Build to that crescendo, wait for it…. Hallelujah.

Exceptions to the Rule: Why You May Need to File Your Tax Return (Despite What People Tell You)

So you didn’t make a whole lot of money this past year of 2014. Does that mean you’re completely exempt from filing that 2015 tax return? Don’t be too sure…. Talk to a specialist from H.O.P.E. to Own about it, regarding your expedient 2-hour tax return to find out, but in the meantime, here’s a bit of wisdom for you to hold onto.

It May Not Matter What Your Income Is Regarding Your Tax Return

Surprise, surprise, but you just might be talking to a specialist only to find out that you do, in fact, have to file that 2015 tax return regardless of how much you made. That could be a good thing, or it could just be an eh thing. Not necessarily a bad thing. Here’s the thing, though:
What if you have unreported tip income? What then? Perhaps you’re a waitress, and you’ve collected X amount of tips throughout the year. Did you know that by law you’re required to file your taxes? The same goes for anyone who is self-employed: writers, dancers, lawyers. You have to be clear, though, on the requirement in the sense that you have to have made more than $400 in the past year. If it’s less, no worries — you don’t need to file any 2015 tax return at all.
Additionally, recapture taxes are common, so pay close attention to that one as well. An example of that would be your typical first-time homebuyer credit, something you could be aware of when approaching the prospect of a H.O.P.E. to Own zero-down home with spotty credit, as we can help you with that. There’s more to consider, though, such as:
  • Alternative Minimum Taxes
  • Household Employment Taxes
  • Retirement Plan Taxes
You’ve got a lot to consider.

Again: Simply Talk to the Professionals Today

After all, you don’t have to do this alone. There’s a wealth of information already about your 2015 tax return (and whether or not you actually have to file). Better be safe and sorry and get a consultation in there, just to be sure. You might need to file anyway, and guess what: that may very well be a good thing!
(Especially with all the tax deductions you could still claim….)