Frugal Tip: Document Donations
Donating items we no longer use so that others can enjoy them is a frugal thing to do. But make sure when you donate something, that if possible you get documentation about your donation. That way, you may be able to reduce your taxes by claiming donations when you itemize your deductions. The tax software I use to do my taxes every year even values items for me so I know what the fair market value to claim is.
Now, some of us don’t itemize deductions (last year is the first year we had enough deductions to do so) so then documenting donations doesn’t really help reduce our tax burden. But for those of us who do, there is no reason to have your act of donating items go completely unrewarded.
And donating things we don’t use or need reduces our clutter and simplifies our life, so it really is a win-win!
This frugal tip provided by paidtwice of I’ve Paid For This Twice Already…