It's important to note that you must itemize your deductions in order to claim them. This means that your total itemized deductions must exceed the standard deduction. If you have a mortgage and live in a state with a high-income tax, you may very well be able to itemize your deductions.
One way to maximize your charitable deductions is by using a donor-advised fund (DAF) like Daffy. A DAF allows you to make a tax-deductible contribution without having to decide immediately which charity to support. Your money grows in an investment account, enabling you to make a bigger impact when you're ready to donate.
Daffy offers a variety of investment options, including stocks, bonds, and cryptocurrency. When you're ready to donate, you can do so directly through the app, making it easier to track your deductions during tax season since all your giving history is in one place.
For instance, let's consider Leah, a senior manager at a major tech company. She earns $200,000 a year and received a $20,000 bonus. She could use a DAF like Daffy to donate her bonus, immediately receiving a tax deduction for that amount. She can then distribute the funds to her chosen charities whenever she's ready.
Daffy also makes it easy to bunch your charitable donations. This tax strategy involves grouping several years' worth of donations into one year to exceed the standard deduction threshold. You can contribute two or more years' worth of donations into your Daffy account during one tax year and immediately receive the tax deduction for that amount.
Don't wait until December to make donations. With Daffy, you can plan your charitable giving throughout the year, helping you be more intentional with your donations and optimizing your tax strategy.
Daffy simplifies the process of saving money on taxes. By signing up for Daffy, you can easily donate stock or crypto, keep your tax receipts organized in one place, and plan all of your charitable donations.
Please note that this information is for educational purposes only and should not be considered tax or investment advice. Consult with a tax and/or investment professional to assess your specific situation.
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Daffy Charitable Fund is recognized as a tax-exempt public charity as described in Sections 501(c)(3), 509(a)(1), and 170(b)(1)(A)(vi) of the Internal Revenue Code. EIN: 86‑3177440.