Virginia has multiple programs which offer a state tax credits.
Soho is my Amazon Smile charity recipient, I donate to them generously from my charity budget, and the NAP credits they offer are my favorite way to pay my state taxes.
Which of these three methodologies you prefer depends on your reason for giving.
If you have a tax credit eligible charity where you like their work better than the state government, then consider redirecting your state tax to fund the charity instead.
Luckily, the form is organized by type of tax credit and the NAP credit section of Schedule CR is only five lines long.
If a portion of your charitable gift is nondeductible, then no portion of the gift can be counted as a Qualified Charitable Distribution. But there is one accepted loophole for QCDs.
This June, the IRS came out with their final ruling on how charitable gifts to receive state tax credits will be handled. This is how the strategy works now.
Taking these few extra steps can maximize your gift’s benefit to both you and the recipient.
New proposed legislation cuts the benefit of donating to charity and receiving tax credits in return.
Virginia taxpayers can give generously and offset the cost of those gifts through tax credits and the avoidance of capital gains taxes.
This video discusses Neighborhood Assistance Programs, and how donating to a local charity can both help people in your area and help you with your Virginia tax bill.
Don’t hesitate to take advantage of this tax code oddity.
Last year people who took our advice saved literally thousands of dollars on their Virginia taxes. A dollar saved on your taxes is more valuable than a taxable dollar earned in income.
More than 200 charities have been designated Neighborhood Assistance Programs (NAPs).
Virginia land preservation tax credits are a savvy way for you to save up to 25% on your state tax bill.
David Marotta discusses how to pay your Virginia state tax bills using less expensive Virginia land preservation credits.
If the tax code permits a huge deduction for brushing your teeth with your left hand while standing on one foot, it is still worth doing.
Before executing a conservation easement donation, you should be certain that it is in line with your financial goals.