Noon: Individual Tax Tips & Refund Strategies, Charitable Giving Before December 31: The Refund Moves New Haven Families and Self-Employed Filers Should Make Now

New Haven, Connecticut, Jose’s Tax Service, October 3, 2026

Year-end charitable giving can support New Haven organizations while improving a taxpayer’s federal position. The result depends on the type of gift, the recipient organization, the taxpayer’s filing status, and whether itemized deductions are used.

A charitable deduction does not automatically create a refund. It may reduce taxable income when the applicable requirements are satisfied. Begin planning now. Do not wait until December 31 to gather records or arrange complex transfers.

Confirm the Organization and the Tax Treatment First!

Before making a contribution, verify that the recipient is a qualified organization. Use the IRS Tax Exempt Organization Search to confirm eligibility.

Most qualifying charities are recognized under Section 501(c)(3) of the Internal Revenue Code. However, some government entities, religious organizations, veterans’ organizations, and other qualified organizations may also qualify.

Complete these steps:

1. Confirm the organization’s qualified status.
2. Determine whether you will receive goods, services, tickets, or another benefit.
3. Reduce the deductible amount by the fair market value of any benefit received.
4. Identify whether the gift is cash, property, securities, or an IRA distribution.
5. Decide whether you are likely to itemize deductions.

For individuals, charitable contributions are generally reported on Schedule A (Form 1040), Itemized Deductions. Self-employed taxpayers should also note that personal charitable gifts generally do not reduce Schedule C business income or self-employment tax.

Reminder: A contribution must be completed during the tax year to be considered for that year. Keep the December 31 deadline in view.

Preserve the Required Records!

The deduction can be denied if the contribution is not properly substantiated. Maintain a digital and paper record for every donation.

Cash contributions under $250

For each cash gift under $250, keep a bank record or written receipt showing:

• The charity’s name.
• The contribution date.
• The contribution amount.
• The payment method.

Acceptable records may include a canceled check, bank statement, credit card statement, electronic payment confirmation, or receipt from the organization.

Cash includes checks, electronic transfers, credit card charges, debit card payments, and online payment services.

Contributions of $250 or more

For a single contribution of $250 or more, obtain a contemporaneous written acknowledgment from the qualified organization. The acknowledgment should state:

• The organization’s name.
• The contribution amount or a description of the property.
• The contribution date, if applicable.
• Whether the organization provided goods or services.
• A good-faith estimate of the value of those goods or services.
• A statement that no goods or services were provided, if that is the case.

Separate contributions are generally evaluated separately. For example, four weekly cash gifts of $100 are not automatically combined into one $400 contribution for the $250 acknowledgment rule.

Obtain the acknowledgment before the earlier of:

1. The date you file the return; or
2. The due date of the return, including extensions.

Noncash gifts over $500

If the total deduction for noncash contributions is more than $500, attach Form 8283, Noncash Charitable Contributions, to the federal return.

Use Section A for qualifying noncash contributions of $5,000 or less per item or group of similar items. Special rules apply to securities and other property.

For a noncash contribution over $5,000, Section B and additional appraisal requirements may apply. Publicly traded securities generally receive special treatment under the Form 8283 instructions.

Warning: Do not estimate the value of clothing, furniture, electronics, collectibles, or business property without support. An overstated valuation may lead to penalties and disallowance.

Review IRS Publication 526, Charitable Contributions and the official Form 8283 instructions before filing.

Use Bunching to Exceed the Standard Deduction!

Many households make charitable gifts every year but do not receive a federal charitable deduction because their total itemized deductions do not exceed the standard deduction.

Bunching may improve the timing of deductions. It involves combining multiple years of planned charitable gifts into one tax year. The taxpayer then claims itemized deductions in the year the contributions exceed the applicable standard deduction.

Example:

• A family normally gives $4,000 each year.
• The family contributes $8,000 in one tax year.
• Mortgage interest, state and local taxes, and other eligible deductions are then added.
• If the total exceeds the applicable standard deduction, itemizing may produce a larger federal deduction.

Use a donor-advised fund only after reviewing the administrative costs, timing rules, and substantiation requirements. A contribution to a donor-advised fund is generally completed when the gift is made to the sponsoring organization. Future grants from the fund do not create a second deduction.

Before bunching, compare:

1. Filing status.
2. Expected adjusted gross income (AGI).
3. Mortgage interest and other itemized deductions.
4. State and local tax limitations.
5. Charitable contribution limits.
6. Potential carryovers.

Reminder: Model the result before December 31. A contribution should be made for financial and charitable reasons, not solely to create a tax benefit.

Consider Appreciated Stock Held More Than One Year!

Donating appreciated publicly traded stock or other securities may be more efficient than selling the asset and donating cash.

When qualifying securities have been held for more than one year:

• The charitable deduction is generally based on fair market value (FMV) on the contribution date.
• The donor generally avoids recognizing the built-in long-term capital gain.
• The gift remains subject to applicable charitable deduction limits.
• The charity generally receives the securities directly.

Do not sell the stock first if the objective is to transfer the appreciated asset. A sale followed by a cash donation can create taxable capital gain before the charitable deduction is considered.

Complete these steps:

1. Confirm the acquisition date and cost basis.
2. Identify securities held for more than one year.
3. Contact the charity for delivery instructions.
4. Transfer the securities directly to the charity or its brokerage account.
5. Obtain a written acknowledgment.
6. Retain the brokerage transfer confirmation.
7. Report the gift correctly on Schedule A and Form 8283, when required.

Securities held for one year or less may be subject to different deduction rules. Obtain professional guidance before transferring restricted stock, privately held interests, mutual funds, or securities with a complicated basis.

Deadline reminder: The transfer must be completed by the brokerage and recorded by the charity before year-end. Starting the process in late December can delay the deduction into the following year.

Evaluate a Qualified Charitable Distribution From an IRA!

A qualified charitable distribution (QCD) is a direct transfer from an eligible individual retirement arrangement (IRA) to a qualified charity. The taxpayer must be at least age 70½ on the date of the distribution.

A QCD may be useful for an older taxpayer who:

• Takes required minimum distributions (RMDs).
• Does not benefit fully from itemizing deductions.
• Wants to support a qualified charity.
• Prefers to reduce taxable IRA income rather than claim a Schedule A deduction.

Use the following procedure:

1. Instruct the IRA trustee or custodian to transfer funds directly to the qualified charity.
2. Confirm that the charity is eligible to receive a QCD.
3. Keep the custodian’s confirmation and the charity’s acknowledgment.
4. Confirm that the transfer is within the annual statutory limit for the applicable tax year.
5. Report the distribution correctly on the federal return.
6. Do not claim the same QCD again as an itemized charitable deduction.

A QCD generally counts toward the taxpayer’s RMD when the requirements are satisfied. It must not be paid to the taxpayer first and then forwarded to the charity.

The annual QCD limit is subject to statutory indexing and legislative changes. Confirm the current limit in IRS Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs) before initiating the transfer.

Warning: IRA transfers may require several business days. Submit instructions well before December 31.

Track Volunteer Expenses and Charitable Mileage!

The value of your time or services is not deductible. However, certain unreimbursed expenses incurred while serving a qualified organization may qualify as charitable contributions.

Potentially eligible expenses may include:

• Supplies purchased for the charity.
• Required uniforms that are not suitable for everyday use.
• Parking fees and tolls.
• Transportation expenses directly connected to charitable service.
• Mileage driven while performing services for the organization.

The federal charitable mileage rate is a separate statutory rate. It is not the same as the business mileage rate.

Maintain a mileage log showing:

• Date of each trip.
• Charity’s name.
• Starting point and destination.
• Charitable purpose.
• Total miles.
• Parking and toll receipts.
• Reimbursements received.

The IRS currently identifies a charitable mileage rate of 14 cents per mile in Publication 526. Verify the rate and current instructions for the applicable tax year.

Reminder: Childcare, personal meals, the value of your time, and ordinary personal expenses generally are not charitable deductions.

Review Connecticut and New Haven Considerations!

Connecticut residents should separate federal and state treatment.

The Connecticut Department of Revenue Services states that Connecticut adjusted gross income (CT AGI) begins with federal adjusted gross income reported on federal Form 1040 or Form 1040-SR, subject to Connecticut modifications. An ordinary federal Schedule A charitable deduction generally does not directly reduce CT AGI.

Accordingly:

• A federal itemized charitable deduction may reduce federal taxable income.
• It generally does not flow through as a separate Connecticut charitable deduction.
• Connecticut-specific credits or adjustments may apply in limited circumstances.
• New Haven does not impose a separate municipal individual income tax deduction for charitable contributions.
• Self-employed taxpayers must continue reviewing federal and Connecticut estimated tax requirements.

Review the official Connecticut Resident Income Tax Information and confirm whether a special state credit applies to the recipient organization or contribution.

Complete the December 31 Checklist Now!

Before year-end, complete the following actions:

1. Verify every recipient organization.
2. Schedule cash gifts early.
3. Obtain written acknowledgment procedures from each charity.
4. Download bank and brokerage records.
5. Complete securities transfers well before December 31.
6. Request QCD instructions from the IRA custodian.
7. Update volunteer mileage logs.
8. Review the bunching strategy against the expected standard deduction.
9. Identify any Form 8283 requirement.
10. Upload records to a secure tax-planning file.

Jose’s Tax Service provides year-round tax planning, individual tax preparation, federal and Connecticut e-filing, and consultations for families and self-employed filers in New Haven and beyond. Appointments are available in person or virtually, with $0 upfront payment and same-day availability when scheduling permits.

Review year-end tax planning resources from Jose’s Tax Service or book an appointment. Planning before December 31 may help prevent missing records, delayed transfers, and avoidable filing complications.

This article is for general educational purposes. Charitable deduction limits, Connecticut rules, and federal provisions may change. Obtain advice based on your filing status, income, charitable recipient, property type, and applicable tax year.

Category: Tax Planning | Tags: tax refund, personal finance, IRS tips, New Haven taxes