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Local Business Sees Bump in Last Minute Donations

4 years 2 months 6 days ago Tuesday, December 27 2016 Dec 27, 2016 December 27, 2016 6:48 PM December 27, 2016 in News

MCALLEN – The new year is coming up which means there’s just a few days to sew up 2016’s financial details for things such as 401-K contributions, health savings accounts and charitable donations.

Goodwill said it was one of the busiest times of year as they receive last minute donations.

“Cleaned out (the) clothes closet,” Patricia Rosenlund said. She was donating some shoes and clothes she no longer needed.

“Getting rid of old stuff that we no longer use,” Fred Rodriguez, who donated some electronics, said.

Goodwill said December is always busy, especially the last week when charitable donations pour in. People who itemize deductions know the window is closing.

“You are getting the last minute taxation but it’s really more about making sure your old things are repurposed and go to a good cause,” Rosenlund said.

Goodwill passes out tickets to people for the items they donated. The person would take that information when they file their taxes.

Isaac Gomez, a CPA in McAllen, said it’s important for people to keep receipts. “Just keep the receipts, rule number one. And second, if you have the receipt plus the correct signature, it’s one of the items that helps if you get audited,” he said.

Gomez said if people do make a lot of charitable donations and itemize there can be some real complexity that is often best navigated by a pro.

“Our job is to ensure the numbers are correct. That all the forms are tied to the tax returns and also to file as early as possible,” he explained.

There are few other tax items to consider as 2016 draws to a close.

  • You can control your income tax bracket – somewhat – by minimizing how much you contribute to your retirement accounts. More towards retirement could drop you down a tax bracket.
  • The IRS provides a catchup allowance for tax deferred retirement accounts for people over 50. You can kick in an extra $6,000 a year once you hit the mid-century mark.
  • Getting in last minute charitable donations before Dec. 31. 

Links:  'Last minute' year-end 2016 tax-saving moves for individuals // 10 year-end tax moves to make now to lighten your tax load in 2017 // Year-End Tax Tips

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