GREENSBORO, N.C. — You know the drill:
17 days until Thanksgiving
20 days until Hanukkah
47 days until Christmas
53 days until New Year’s Eve
158 days until Tax Day
What? I know that's forever from now, but what you do before the end of the year will affect your Tax Day in 2022.
This year, married folks can each give $300 a piece to charity, so that's $600 total. Because it is charitable giving, they can deduct that $600 from their taxable income.
“They can reduce their income by $600, much like when they make an IRA contribution, they bring their income down $600. If you don't have enough to itemize but you're married filing jointly you can deduct up to $600 in charitable contributions and still get the standard deduction,” said Kevin Robinson of Robinson Tax & Accounting Services.
This $600 is a change from the last tax season. In 2020, the total amount to give to charity above the standard contribution was $300, whether single or married.
No itemization is needed! That’s a big deal. The deductions help lower your taxable income, which lowers the amount of tax you owe. Plus, you’re giving money to charity, so it’s a win-win all the way around.
If you're looking to save more money on your taxes, Robinson said you need to look at your federal withholding. Robinson cites a Kiplinger report on the top ten year-end tax to-do list. You can use the IRS’s Tax Withholding Estimator. This can help you figure out if you need your employer to increase the amount of taxes withheld from your paycheck before the end of the year so you aren’t surprised with a big bill at tax time.