Monthly Archives: December 2015

Answers to 4 Questions on Holiday Giving and Taxes

holiday giving and taxes

This is the season of giving, and there is no better time to help your favorite nonprofits successfully leap into the New Year. Tax deductions on your charitable contribution, can pave the way to a happier January for you as well! Check out these charitable giving FAQs from Raccoon Valley Bank to help you make the most of your generosity.

Where does my gift need to go to make it tax deductible?

Score a deduction by itemizing and filing a 1040 form when you donate to a qualified organization. Nonprofit organizations like religious groups, public government causes, nonprofit schools and hospitals, public parks and recreation areas, and war veterans’ groups fall under the qualified category, whereas for-profit entities, individuals, or political candidates for public office, don’t make the cut.

What’s with itemizing?

There are two types of deductions, standard and itemized. Standard is a fixed amount that reduces the income you’re taxed based on your filing status and age. Itemized lets you list your deductions on a schedule, which includes filings like property taxes and charitable donations. If you claim standard instead of itemized on gifts, you may not receive the deduction you deserve.

How much can I deduct from charitable donations?

If your cash benefits a public organization, deduct up to 50 percent from that year’s Adjusted Gross Income (AGI). That means that a $25,000 donation from your $40,000 AGI will only let you claim $20,000 on your charitable gift in the year that you give it. You can, however, roll over that extra $5,000 up to five years after donating. For contributions to private donations like the Bill & Melinda Gates Foundations, use the same rules but swap 50 percent with 30.

I donated “stuff”, not cash. Does that count?

Yep! Household goods (clothing, furniture, certain appliances, etc.) and other personal property can be claimed based on fair market value. However, it must be in good or better shape that when it was first purchased for the IRS to count it as a deduction. Regardless of the item, keep track of receipts from your donated items, which is especially required for donations of more than $250.

Still have questions about how your giving and your taxes interact? Our financial advisors would love to lend a hand. Give us a call today – and have a happy holidays!

 

Raccoon Valley Bank, Equal Housing Lender, Member FDIC

 

6 Holiday Traditions to Try This Season

holiday traditions

You can’t think “holidays” without thinking “tradition.” From marathon baking fests to tree lighting ceremonies, this time of year is stuffed with seasonal memory makers. Add a new – and inexpensive – tradition or two to uniquely bind your family together, courtesy of your friends at Raccoon Valley Bank!

Create a crazy dinner: Hate spending hours in the kitchen prepping an elaborate meal while missing shenanigans in the next room? Let your family take the reins and give each member $3-$5 to spend at the grocery store on any item they want for dinner. Kids can go nuts grabbing items that might not normally make it to the table, and siblings can pool their money to buy big ticket items. Take your spoils home and enjoy a bizarre, family approved candlelit dinner that you can reminisce about at next year’s crazy meal.

Decorate the tree skirt: Buy a simple, solid colored tree skirt from a dollar store or bargain bin, and trace each of your children’s hands around the edge with a sharpie. Let them write their name and age inside the handprints as soon as they’re able, and keep track of their growth each year when they add an annual handprint under the tree.

Update the holiday memory book: Grab a blank page from your scrapbook and record the highs and lows from the year, attaching your family’s holiday card below. At your annual holiday gathering, pass it around to other families and ask them to do the same, preserving stories of your extended family in one treasured keepsake.

Tour the town: Bundled in pajamas and coats and blankets, load your kids into the family vehicle and cruise around town looking at the holiday light displays. Check your local paper ahead of time to scout out the most luminous neighborhoods and displays from area businesses. Bonus points for bringing hot chocolate and a tin of holiday cookies to pass around.

Write keepsake letters: The night before your special holiday, write a letter to each of your kids about the events, gifts, and excitements that made that December special for them, as well as your hopes for their new year. Keep these letters in a small holiday box that you share with them when they turn 18.

Operation Holiday Cheer: Show your kids it’s better to give than receive. Discover ways to uplift neighbors and members of your community with your children. Shovel snow, bake treats, hang lights, all for the betterment of another. Not only will they get the reward of a job well done, but they’ll get to experience the joy of giving to others with no expectations or strings attached.

Raccoon Valley Bank wishes you and your family a happy holidays!

 

Raccoon Valley Bank, Equal Housing Lender, Member FDIC

 

6 Tips for Donating Your Time and Talents During the Holidays

holiday donating

In the chaos surrounding the holidays, “It’s better to give than to receive,” can sometimes take a seat on the back burner. While you’re trimming the tree or cozied up next to loved ones around the table, others may be experiencing a much different holiday season. This season, scope out opportunities in your local community for you and your family to lend a hand. Add some holiday magic into the lives of neighbors in need with these ideas, courtesy of Raccoon Valley Bank.

 

  1. Make food and dish it out – Cookies and casseroles can be great gifts this time of year. You can provide something delicious for those who don’t have the means or are short on food, as well firefighters, police officers and other public servants.
  2. Pack stockings for the homeless – Pick out some cheap stockings and fill them with practical items. These can range from food and drink (granola bars, bottles of water, etc.) to gloves, socks and hygiene items.
  3. Donate old toys – Kids’ toys and games can get pricey in a hurry. Sift through your kids’ toys with them to choose items to donate towards kids who aren’t as fortunate.
  4. Pay a visit to a local nursing home – The holidays can be tough times for the elderly living in nursing homes. A small visit, or gift from a stranger, could brighten their day and make their holiday season extra special.
  5. Donate to a food bank – Winter is a difficult part of the year, and it is far worse if you don’t have enough food. Food banks and food pantries could put your donation to good use, and they may have opportunities to volunteer as well!
  6. Have family members make a donation in your name – Replace one thing on your holiday list with a donation is made in your name towards the charity of your choosing. Give the gift of giving this holiday season.

 

Which of these opportunities strikes a chord with you?

 

As you go throughout the usual chores and activities of the holidays, remember to think of those who aren’t as fortunate. Share some holiday joy and enjoy this winter season.

 

Raccoon Valley Bank, Equal Housing Lender, Member FDIC

 

4 Ways to Teach Your Kids About Holiday Spending

teaching kids holiday spending

Are sugar plums or dollar signs dancing in your little one’s head as they dream about the holidays? At Raccoon Valley Bank, we say, “why not both?”

 

As you budget and buy for this upcoming season of celebrations, make it a family affair and teach your kids about the value of financial planning. It’s the perfect opportunity for them to see tracking, spending, saving, and giving of resources in action. Bring them into the process with these kid-friendly pointers.

 

  • Create a budget: Squeeze the most magic out of the holidays by creating a battle plan. Let the kids listen as you and your partner settle on a budget for the month, breaking it down into categories like food, gifts, parties, and decorations. Once they understand how to build a budget, turn them loose to make one of their own, allotting a dollar amount on gifts for each person on their list.
  • Get crafty with gifts: Try your hand at homemade gifts this holiday season. Presents range from thoughtful cards, favorite family recipes, home baked goods, and more! Many of these gifts can be created with supplies lying around the home or purchased for cheap. Your kids benefit when they unleash their creativity and see the thoughtful effort of a gift crafted by hand.
  • Shop smarter: Share the experience of household budgeting your kiddos this winter. When you head to the grocery or department store, be upfront about how much you plan to spend on what purchases and why. With that knowledge in mind, they can help you spot sales as your cruise the aisles. Turn your shopping adventure into a game by challenging them to find the best deal or most creative alternative. Bonus points for paying with cash to give them practice counting money and deducting coupons!
  • Give, give, give: It’s better to give than to receive, and the holidays are the perfect opportunity to show your kids this principle in action! Build on this lesson in empathy by choosing an organization like Toys for Tots or Operation Christmas Child to purchase gifts for a child in need. Have your child help pick out and deliver the purchase to experience the joy of giving firsthand.

Make the holidays the most wonderful time of year for you and your children, as well as those around you. Raccoon Valley Bank is always here to help your family make the most of your financials to start you strong in the New Year! For more information about our financial planning services, give us a call to get connected with one of expert advisors.

 

Raccoon Valley Bank, Equal Housing Lender, Member FDIC

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