One of the challenges many people face is that it can be difficult to itemize your deductions. For certain types of deductions, you can only take advantage of them when you itemize. Fortunately, Daffy offers a solution to this problem.
With Daffy, you can use a strategy called bunching. This involves combining multiple years' worth of charitable contributions into a donor-advised fund in a single tax year to surpass the limit and itemize your deductions. For instance, if you're a single taxpayer who donates $7,000 to charity each year, you may find that your charitable contributions alone don't exceed the standard deduction threshold. However, by bunching two years' worth of contributions in a single tax year, you double your charitable contributions, thereby exceeding the threshold.
The great thing about Daffy is that it’s easy to bunch charitable contributions. First, contribute the amount you wish to bunch to your Daffy fund and immediately receive a tax deduction for that amount. Then simply distribute the funds to your desired organizations whenever you are ready to give. This way, you can continue to donate annually by using the funds you set aside in Daffy.
Start giving and saving more with Daffy. By maximizing your charitable tax deductions, you can reduce your tax bill and give more to the causes you care about.
Please note that the information contained on this page is for educational purposes only and should not be considered tax advice. Any calculations are intended to be illustrative and do not reflect all of the potential complexities of individual tax returns. To assess your specific tax situation, please consult with a tax professional.