Remember my "You Have Arrived" post regarding the ability to itemize on your taxes? Well I met my goal this year...I stayed consistent with my tithing in church (which was a 2011 New Year's resolution for me) and it resulted in me being able to itemize on my 2011 federal tax return in addition to being blessed beyond measure. I thought it would be nice of me to share how this turned out to be a benefit for my taxes... even though a tax deduction for charitable contributions was not even 50% of my motivation for wanting to donate more to non-profit organizations including tithes to my church.
As you all know from my tax posts...either you can claim the standard deduction or itemized deduction on your federal tax return. The standard deduction for 2011 is $5,800 for singles no matter how much you made. Itemizing is a bit different and fluctuates based on what you are able to itemize. For 2011, I was able to itemize $7,160. This included my state income taxes paid (this would've been taken out of my paycheck regardless) as well as my charitable contributions (roughly $4000 in tithes and other charitable donations throughout 2011). So in essence, for 2011 I was able to deduct $1,360 more ($7,160 - $5,800) from my income by keeping up with tithing and being a little more generous than I would've been in the past.
The bigger deduction resulted in my tax liability being about $400 lower than it would've been had I only been able to take the standard deduction. This means my refund was $400 larger. Now, I know what you're thinking...this isn't a lot.
But I. Feel. Amazing. For a few reasons:
1) I was able to successfully complete my New Year's resolution for 2011.
2) I was able to itemize and take just that much more of my mula back from the IRS...which honestly makes me want to start planning and saving for the next big itemization move...buying a home. I think it's great to set that up as a goal for myself at 25.
3) My refund is $400 bigger! It's not a ton of money but it's $400 the IRS would've had otherwise!
4) Giving is so much more fulfilling than I could have ever imagined. This is really the biggest reason (hence it's bold type font). Contrary to popular belief, I did not have to give up anything in order to give...and if I did, I didn't notice it. That's how happy giving made me. :-)
Happy itemizing and happy giving!
Showing posts with label philanthropy. Show all posts
Showing posts with label philanthropy. Show all posts
Tuesday, February 21, 2012
Thursday, January 26, 2012
Making Philanthropy Fun: How to Get Engaged in Giving Back
One of 25 and retiring's readers requested that I write about philanthropy for twenty somethings. Coincidentally, I ran into this article on Wall Street Journal the same week: Making Philanthropy 'Fun' For Young Professionals
The key word for our generation is fun. We really only find value in spending time doing things we enjoy. I mean let's face it, we're pretty selfish like that. So when thinking about philanthropic opportunities that you can get involved in (and will most likely stay involved in) don't feel bad about measuring the fun factor.
A few creative ways to give back and enjoy it:
1) Participate in a program with children. For those of us who actually like them [children], programs like Big Brother Big Sister are a really fun way to give back. I participated as a Big Sister in Chicago my first year back and used it as an opportunity to do all of the fun, childish, touristy things I enjoy about the city but my friends might think are lame or a waste of time and money: ice and roller skating, Segway tours, trips to Navy Pier (more specifically the Children's museum), arts and crafts, etc.
2) Join a Junior Board. These are also a great way to meet other like-minded young professionals in your area. A lot of non profit organizations grab the attention of twenty somethings through their Junior Board. The Junior Board raises awareness about the organization while bringing in funds in the form of programming, events and fundraisers. Of course the board is composed of other young professionals, so meetings and things, while business-like and semi-serious can also be really fun because you usually become friends with fellow board members. This is also good to be able to put on your resume, especially if you assume a leadership position and can potentially prepare you to sit on the Executive Board of a non profit one day. I participated on a Junior Board in Chicago as well for two years and have gained very close and beneficial relationships with young professionals across different careers because of it, all the while assisting in the growth and development of a non profit whose mission I believed in. Pretty good deal.
3) Volunteer with Your Friends! When it comes to organizing a night out, afternoon at the movies, game night at someone's home, or a weekend road trip, we can organize away. Well what about organizing a fun volunteer activity for your group of friends on a Saturday afternoon (of course followed by lunch/dinner and drinks at your favorite bar or restaurant) at your local homeless or women's shelter or soup kitchen? Maybe you can even make it your annual Thanksgiving or Christmas activity??? I participate in a small group bible study with a group of young women and as part of our group we've designated someone to come up with community service activities for us to engage in from time to time. You can do this too if you're involved in a book club with friends or maybe if you go hoop with your boys on a weekly basis. The point is, anything you do with your buddies, will be guaranteed fun!
The key word for our generation is fun. We really only find value in spending time doing things we enjoy. I mean let's face it, we're pretty selfish like that. So when thinking about philanthropic opportunities that you can get involved in (and will most likely stay involved in) don't feel bad about measuring the fun factor.
A few creative ways to give back and enjoy it:
1) Participate in a program with children. For those of us who actually like them [children], programs like Big Brother Big Sister are a really fun way to give back. I participated as a Big Sister in Chicago my first year back and used it as an opportunity to do all of the fun, childish, touristy things I enjoy about the city but my friends might think are lame or a waste of time and money: ice and roller skating, Segway tours, trips to Navy Pier (more specifically the Children's museum), arts and crafts, etc.
2) Join a Junior Board. These are also a great way to meet other like-minded young professionals in your area. A lot of non profit organizations grab the attention of twenty somethings through their Junior Board. The Junior Board raises awareness about the organization while bringing in funds in the form of programming, events and fundraisers. Of course the board is composed of other young professionals, so meetings and things, while business-like and semi-serious can also be really fun because you usually become friends with fellow board members. This is also good to be able to put on your resume, especially if you assume a leadership position and can potentially prepare you to sit on the Executive Board of a non profit one day. I participated on a Junior Board in Chicago as well for two years and have gained very close and beneficial relationships with young professionals across different careers because of it, all the while assisting in the growth and development of a non profit whose mission I believed in. Pretty good deal.
3) Volunteer with Your Friends! When it comes to organizing a night out, afternoon at the movies, game night at someone's home, or a weekend road trip, we can organize away. Well what about organizing a fun volunteer activity for your group of friends on a Saturday afternoon (of course followed by lunch/dinner and drinks at your favorite bar or restaurant) at your local homeless or women's shelter or soup kitchen? Maybe you can even make it your annual Thanksgiving or Christmas activity??? I participate in a small group bible study with a group of young women and as part of our group we've designated someone to come up with community service activities for us to engage in from time to time. You can do this too if you're involved in a book club with friends or maybe if you go hoop with your boys on a weekly basis. The point is, anything you do with your buddies, will be guaranteed fun!
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