Tax Deductions – Minor (?) Amounts
Another largely forgotten group of deductions are donations. Many of us give $2 here or $5 there to a door knocker or to someone volunteering their time in the city. When these people give you a receipt – keep it! I know it seems annoying to collect all those little bits of paper, but they can add up to make a really big difference. I have an example that will surprise you.
A client of mine is eligible for a senior’s card, but only if his taxable income is below $50,000. After preparing his return, we found his taxable income was $50,018. He looked around at home, and he found little paper receipts for donations totalling $29.00. Doesn’t sound like much? Well, because he had legitimately given $29 in donations over the year, he became eligible for his seniors card after all – many dollars of savings over the following 12 months. The little things really do matter.
Also, remember that you can take photos of these receipts – such an easy way to keep a record of them. Just don’t forget about them!