8 STEPS TO TURN COUPONS INTO HUGE TAX DEDUCTIONS

8 STEPS TO TURN COUPONS INTO HUGE TAX DEDUCTIONS


The person who collects coupons often wonders what to do with all the coupons for products their family does not use. Some people have started
trading circles and some people end up throwing them away. There is a way that you can use them to save money on your taxes.

8 STEPS TO TURN COUPONS INTO HUGE TAX DEDUCTIONS
1. Locate Tax Deductible OrganizationsFind tax deductible organizations that collect items that you have couponson. Some possibilities include many military organizations that pack boxes to send to the military, homeless shelters, abused women’s shelters, and senior citizen agencies.

2. Prepare to Go to the Store
When you get into the car, record your mileage, and the time. You are allowed, in most cases, to deduct mileage when getting supplies for non-profit agencies.

3. Find a Great Price
Check out to see what store is offering the product at the best price.

4. Go to the Store
Take the coupons to the store that has the best price or one that will offer the same price as their competitors. Pick the items up off the shelf. Make sure that your items exactly match the items you have the coupon for. Record the list of the product at full price. The candy that I have the coupon for normally sells for $5.00 a bag.

5. Pay for the Items
Take the items to the checkout and pay for the items. Make sure to use your coupons. Using the coupons, I get my 20 bags of candy for $2.00 a bag. I love using coupons, don’t you?

6. Deliver the Items
Deliver the items to their intended recipients. Make sure that the recipient gives you a receipt for the full market value of the items
donated.

7. Record the Mileage
After you have gotten back home, record the mileage and the time again.

8. Prepare Your Taxes
When it is time to donate the items, then take the full market value of the items, plus the mileage for your items. In most cases, you can also deduct an amount for your time.

Let’s look at a real life example:

I notice that the USO is collecting hard candy to include in shipments to the soldiers. I have 20 coupons for hard candy. Before I get into the car, I note that my mileage is 74,000 and that the time is 10:00 AM. I drive to the store and buy the candy. I record that my 20 bags of candy normally sells for $5.00 a bag for a total of $100.00.

I then drive to the local USO agency and deliver the candy. I then return home. I note that the mileage reads 74,050 and the time is 1:00 PM.

When I go to prepare my taxes, I can take the $100 off my taxes as a donation, I can take the 50 miles off my taxes and I can take my three hours of time off my taxes. All while using coupons that I normally would not use. Meanwhile, I also get to feel good about helping someone else.

It really is a win/win situation. Individual states vary in tax laws, so be sure to check your individual state’s laws.

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Guest post by Alexis Willis who enjoys cooking, giving financial advice, and writes for
creditreport.org
.

Image Credit Fotolia Stock Photos

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