NACOGDOCHES, TX (KTRE) – There are only two more days left in 2010. Even in that short amount of time there are several moves you can make to receive added deductions on your income taxes.
Angela Kirk works at Love In the Name of Christ and while the office is closed she uses the quiet time to prepare a grant. Besides grants, Kirk is hoping someone will mail in or stop by with a donation. "Well, clearly December, it's similar to retail. If you don't have a good December you don't make your budget, so the December donations are critical to the survival of the solvency of your non-profit agency." For the donor it's a last minute deduction on their taxes.
Paying your property taxes before Friday also provides a significant deduction.
Joe Aguilar, a certified public accountant, suggests visiting the website 'IRS.gov'. Accountants advise taxpayers to start organizing tax documents now.
There's no need to read the four inch Internal Revenue Code, but it is wise to be aware of the new tax law making some tax advantages retroactive. "And because of that retroactivity the IRS is not ready to start processing tax returns. In fact, it won't be ready until mid-to-late February before they've got their software up to date," Aguilar said.
Taxpayers will have a little extra cash, too. The social security tax is dropping for employees. "For every $100 of earned income, you get $2 extra take home pay."
Donations must be made by December 31, 2010 in order to deduct them on your 2010 tax return. That's one reason why the last two days of the year are the busiest for online credit card donations to charities.