Secure The Bag: 6 Smart Ways To Elevate Your Finances Now! - Page 3

2. Donate to Your Favorite Charitable Causes

Donating to charity is not only a great way to support causes you care about, but it can also provide significant tax benefits. If you’re in a position to give, consider making charitable contributions before the end of the year. Donations to qualified charitable organizations are tax-deductible, which can help reduce your taxable income and lower your tax liability for 2024.

The IRS allows you to deduct charitable contributions of money or property made to qualified U.S. based organizations, provided you itemize your deductions. In most cases, you can deduct up to 50% of your adjusted gross income (AGI) for these contributions. However, it’s important to note that certain limitations may apply—specifically, a 20% or 30% limit on deductions in some situations, depending on the type of donation and the recipient organization. Be sure to check the guidelines for your specific situation to maximize the potential tax benefits of your charitable giving.