By Ed Schultz, Relationship Manager at United Way of Treasure Valley
Can you believe it’s tax season already? I just pulled together all the documents that my accountant will need to prepare my tax return, and dropped them off at his office. But as I was building that pile of documents, I was thinking, “I’m paying a lot in taxes. How can I change that?” Now is the time to begin working on how you can reduce your 2023 tax bill.
Ways to reduce your taxable income and/or reduce your annual tax bill
- If you want to give a stock gift - What are the tax benefits? You get to take the current market value of the stock as a donation, but you avoid the capital gains tax on the amount of increase in the stock price since you purchased it. You initiate this transaction with your broker or account manager. To get the full tax benefit the stock is transferred directly to United Way.
- If you are at least 70 ½ years of age, you can use some or all of your Required Minimum Distribution (RMD) as a Qualified Charitable Distribution (QCD). This tax benefit allows you to instruct your IRA/401k manager to give the funds directly to the non-profit(s) of your choice. Don’t let the money come directly to you as it’ll be taxable to you then. Your QCD counts towards your RMD but is not taxable.
- If you itemize, the more you give the larger your deduction.
- If you want to leave a gift in your will. While this isn’t an immediate tax benefit, it can provide tax savings and peace of mine for your family. This legacy gift will continue the work of helping people for years to come. My wife and I have put in place a gift in our will for United Way of Treasure Valley. I’ve been around this work for 20+ years and a donor for at least 30 years. We want our impact to continue long after we’re gone. If you don’t already have a will, we can help you create a legal will in less than 30 minutes. Use this link to create your will. Share this link with friends and family. The link will create a legal will for any state in the country.
Many of our donors use the above options so they can get the most tax benefit from their donation while helping people across the Treasure Valley.
Start thinking now about how you can maximize your gift to help individuals, kids, and families have the opportunity to thrive. I’d love to talk with you about how you can use the most tax-savvy ways to make your gift. No pressure, just information. Call Ed at 208-807-2931 or email at ESchultz@unitedwaytv.org.
Change doesn’t just happen. It’s created together. It’s planned.