When it comes to paying Federal and State taxes, the due date is typically April 15th. However, the tax impact on your income, especially if you receive bonus income, can be significant. This is where Daffy, a Donor-Advised Fund (DAF), can be a great option to help you manage your tax bill.
Daffy offers a unique way to lower your tax bill while also giving back to the community. If you received a big bonus this year, you might be subject to a high tax rate. Employers typically withhold both federal and state taxes before you receive your bonus check, which can result in a much lower dollar amount than you might have anticipated.
But don't worry, Daffy has got you covered. By making a charitable donation through Daffy, you can help lower your tax bill. An estimated 73% of Americans reported donating to charity in 2020, and while this number has dropped due to the COVID-19 pandemic and recent tax changes, Daffy provides a way to continue this tradition of giving.
With Daffy, you can deduct charitable contributions up to 60% of your adjusted gross income if you itemize your deductions. This can be a great way to offset the taxes on your bonus income.
Moreover, Daffy also provides resources and tips to help you analyze your tax return and adjust your W-4 to avoid a significant tax bill in the future.
So, if you're looking for a way to manage your tax bill while also making a positive impact on your community, consider Daffy. It's a win-win situation - you get to lower your tax bill and give back to the community.
For more information, check out Daffy's resources on how to lower your tax bill and how to make the most of your bonus.
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.