The holiday season is coming to an end but the debt it left behind is just beginning.
One way you can pay off those credit cards is by donating your gently used goods for an end-of-the-year tax write-off.
“Donations, the last week of the year, are very high, such as yesterday with 99 donations from this one center and probably the last day of the year we’ll average 200 plus donations from this center alone,” said Joshua Jones, Bowling Green’s Goodwill Center manager.
This is because Goodwill makes it easy for you to claim your tax deductions by providing you with a receipt as proof of your donation.
“They just need to see the attendant when they make the donation and the attendant will put the store number on there and date it and verify that the donation was made,” Jones said.
People like Beth Kellerman are taking advantage of this tax incentive.
“About three times a year I go through the house ... stuff that I haven’t used in a while ... old furniture ... stuff like that ... I bring in,” said shopper and donor, Beth Kellerman.
“We did prior to my husband retiring. Once he retired we can’t use that form anymore because his income is reduced enough you can’t claim it for taxes,” said shopper and donor, Pat Baldwin.
But if you’re income is high enough and you donate everyday household items you could take a standardized deduction.
“I usually take a standardized $500 deduction. I understand that if you do take anything above $500 that you have to list each individual item and how much it’s worth ... Its value,” Kellerman said.
But Joshua Jones said you should do that with every donation.
“We recommend the donor makes an itemized list to go along with the receipt so they can send it on to their tax preparer,” Jones said.
Though the last day of the year may be one of the busiest days for charities because of end-of-the-year tax write-offs, Pat said she also donates for other reasons.
“We donate because we say how it helped us during our struggling years of getting established. We want to do that for other young families too,” Baldwin said.
And to view a list of Dos and Don’ts, click here.