The clock is ticking on tax deductions for 2013. IRS officials say donations to charities and contributions to workplace retirement plans need to be made by Dec. 31 in order to count for the 2013 tax year. These include donations to qualified charities, which must be itemized when you file your taxes. Additionally taxpayers need receipts for each donation, regardless of how large or small it is, in order to claim it as a charitable deduction. A donation charged to a credit card by Dec. 31, 2013 is deductible even though the bill won’t be paid until next year.
Federal tax filers who are age 70-and-a-half or older can have up to $100,000 transferred directly to a qualified charity. This transfer can serve as the filer’s required minimum yearly IRA distribution, is tax-free to the filer, and benefits the charity. Keep in mind this tax benefit is set to expire at the end of this calendar year.
Also, low and moderate-income workers can save for retirement and enjoy a special tax credit in 2013. The saver’s credit helps offset part of the first $2,000 workers voluntarily contribute to IRAs and to 401(k) plans and similar workplace retirement programs. People have until April 15, 2014, to set up and contribute to a new IRA for 2013 or to add money to an existing IRA for 2013, but elective contributions to a 401(k) plan or similar workplace program must be made by 12/31/13.
Find more information about these and other tax breaks by visiting the Internal Revenue Service Website, www.IRS.gov.