With April 15th just around the corner, many of us are feeling that annual anxiety linked to tax preparation. Typically, it starts sneaking up amid all the hustle and bustle of the holidays. By the time the holidays pass, many of us are 10 pounds heavier but our wallets are 10 pounds lighter. Instead of beginning the New Year with stress-free sensations of peace and plenty, we’re stressed and strategizing ways to pay back holiday bills and to pay for what we owe for taxes and their preparation. If you find yourself among this group, Gone for Good wants to remind you that you still have the opportunity to maximize your refund before the 2016 tax deadline. You can do this by asking your tax consultant to apply deductions from donations you made throughout the previous year. Donations include monetary contributions as well as tangible goods you gave away. However, if you don’t do some leg-work in regard to your drop -offs, you may not be strategically aligned for the best refund outcome.
Detailed-tracking ensures you get the most value for your drop-off. Turbo Tax provides detailed-tracking thorough “It’s Deductible Online” (www.itsdeductible.com). This feature serves as a resource in the following ways:
• Based on the style and condition of non-cash donations, they assign a re-sale value to each item. Additionally, these values are assigned under IRS guidelines. Known as Fair Market Values, they ensure charitable donations are evaluated correctly and in a way that lowers the risk of tax auditing.
o According to the IRS, “you can no take a deduction for clothing donated after August 17, 2006, unless it is in good condition or better. An item of clothing that is not in good used condition or better for which you take a deduction of more than $500 dollars requires a qualified appraisal. Visit http://www.irs.gov/pub/irs-pdf/p561.pdf for additional information on IRS guidelines.
• You can continuously input and save information on their site throughout the year, so you don’t lose track of your donations and can essentially see how your savings are adding up.
If you choose not to use a resource like the one mentioned above, consider utilizing your own spreadsheet throughout the year. Gone for Good provides a great template for this. When you request our services, you can look forward to receiving a detailed spreadsheet at the end of our process. It clearly displays which items we sold for you and which items we donated. You’ll also get a check back for 30% of profits acquired from your items. This documentation shows the amount you are getting back and help in maximizing your refund. At the end of year, you can supply our spreadsheet, along with any additions you made throughout the year, to a tax consultant. Gone for Good recommends utilizing United Tax Service, Inc. (303-667-6545) http://unitedtaxhelp.com/
They’ll do the work required in matching your items with values designated by the IRS. In the end, you can take credit for your refund outcome, because you were savvy enough to track your items and their corresponding values.