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What Is a Tax Deduction?

6 Items That Qualify for Tax Breaks

Simply put, a tax deduction is defined as an expense or itemized deduction that reduces the amount of income that is subject to taxation. This allows individuals and businesses to reduce their taxable income and lower the amount of tax they owe the government.

Here are six items that can qualify you for tax deductions:

  1. Standard deduction

This is a predetermined deduction amount set by the IRS where taxpayers can choose to claim the standard deduction for a single filer, head of household, or itemized deductions for medical and dental expenses, state and local taxes, mortgage interest on qualified home loans, charitable contributions, casualty and theft losses, and unreimbursed job-related expenses.

  1. Student loan interest

Taxpayers who have paid interest on qualified student loans may be able to deduct a portion of the interest paid.

  1. Self-employed business expenses

Self-employed taxpayers can deduct various business-related expenses from their taxes.

  1. Retirement contributions

Contributions to qualified retirement plans, such as 401(k) or Individual Retirement Accounts (IRAs), may be deductible up to certain limits.

  1. Health Savings Account (HSA) contributions

Contributions to an HSA for individuals with high-deductible health insurance plans are deductible up to certain annual limits.

  1. State and local sales tax

Taxpayers have the option to deduct state and local sales taxes paid instead of deducting state and local income taxes if the former provides a greater benefit.

 

How to Get a Hefty Tax Deduction Using Your Old Car

If you have an old and unwanted car that you wish to dispose of, you can claim a top tax deduction by donating it to us at Kids Car Donations. We’ll use it to help save the lives of critically ill boys and girls in your community and improve the health and well-being of those who are stricken with other illnesses and disabilities.

Our team will auction off your vehicle and use the proceeds to support the pediatric healthcare programs of our charity partners. These IRS-certified 501(c)(3) nonprofit organizations cater to indigent children and adolescents suffering from serious illnesses, injuries, and disabilities.

They use the funding we give them to provide their young beneficiaries with comprehensive medical assistance, including free treatments and therapies, emotional support, relief of pain and trauma during hospital confinement, and other vital healthcare services. They also use the money to sustain their campaigns promoting child health care, advocacy, research, and education.

Because we are partnered with IRS-certified 501(c)(3) nonprofits, your donation will entitle you to claim the maximum tax deduction. For example, if your donated vehicle is sold for more than $500, you can take a tax deduction that’s equivalent to its exact selling price. In case your car sells for less than $500, you can claim as your tax deduction either the final sale price of your vehicle or its fair market value not exceeding $500, whichever is higher.

Here are more reasons why donating a vehicle to Kids Car Donations makes a lot of sense:

  1. We’ll handle all the paperwork for you.

Donating to us means leaving all the stressful paperwork handling to our team of experts. You can expect everything ready for you — from the transfer of vehicle ownership to the issuance of your tax-deductible receipt. We can even make the necessary arrangements to help you obtain a replacement title in case you misplaced yours.

  1. Our donation process is easy, simple, and convenient.

After you provide us with the information that we require about you and your donated vehicle, you can sit back and relax while we do all the heavy lifting for you. You won’t have to worry about a lengthy donation process because once you’ve submitted to us an accomplished online donation form, you’re all set.

  1. You’ll get FREE car removal.

You don’t have to pull out your credit card to pay for the cost of towing. With us, towing is free. Aside from this, we’re willing to pick up your vehicle from any point in the country.

  1. Save yourself from the hassles associated with selling a used car on your own.

It’s tough to sell a beater that needs a lot of work. You may need to spend a small fortune on repairs and bodywork before you can take pictures of it for the ads you’re going to post on the paper. If you decide to donate it to us, you won’t need to spruce it up because we’ll take it as it is!

 

Support Needy Pediatric Patients in Your Community Today!

Take this opportunity to help ensure the well-being of ailing kids in your community. Your car donation can serve as a lifeline to those youngsters who desperately need proper medical care and treatment. Show that you care for them by calling Kids Car Donations at 866-634-8395 or filling out our secure online donation form now!