MASON CITY, Iowa – This time of year, many volunteer or donate to a good cause, and a local tax expert says your generosity can come back to benefit you.
Those we spoke with say to always keep a receipt for any donations. If you are looking to get money back from Uncle Sam, you should think about what organizations you want to donate to. Say you’re looking to give to a school tuition organization, you could see that money come back in full.
“Certain taxpayers can actually get a dollar for dollar deduction, meaning if they give $1,000, they save $1,000 off their taxes,” said Dennis Muyskens, shareholder at Hogan-Hansen in Mason City.
Muyskens says for those over 70 years old, it’s very beneficial to donate money from their IRAs. That way they can expect to get 20 to 30 cents on the dollar back come tax season.