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The Tax Cuts and Jobs Act of 2017 raised the standard deduction for US taxpayers and capped the state and local tax deduction at $10,000. This greatly reduced the number of taxpayers who itemize on their tax return and caused a major reduction in charitable giving.

Taxpayers who itemize can reduce their income by the amount that they give to eligible charities and charitable organizations, and thus pay less in taxes.


When you pay taxes you (or let's be real – your accountants) add up all of your deductions (charity donations, student loan interest, et cetera) and if it's more than the standard deduction of $12,400 for single people ($24,800 for married couples filing jointly), you can reduce your income by that amount and pay taxes on that amount.

Since the standard deduction is now higher, less people are itemizing all their deductions as they don't expect to exceed the standard deduction. This disincentives people from giving to charities as they won't be able to use that donation to lower their tax burden.

This year offers a special opportunity thanks to the CARES Act.

The CARES Act was passed in response to the Coronavirus pandemic and offered a special incentive for people to give more to charities, many of which are facing more demand than ever as the pandemic rages on.

Starting in 2020, up to $300 in charitable contributions may be used as an above-the-line deduction, meaning that you would be able to deduct up to $300 in charity donations and mutual funds even if you take the standard deduction.

Let's say you are a single person that lives in Washington State and make $60,000 a year. Your top Federal tax rate is 22% and you pay no state tax in Washington.

Now, you're very likely to take a standard deduction of $12,400, meaning you would only need to pay taxes on $47,600 of adjusted gross income, lowering your tax bill by $2,728 (22% of $12,400).

But, thanks to the CARES Act, if you also give $300 in charitable contributions to charity this year, you would be able to deduct that money as well, reducing your taxes by an additional $66.


Donating Cash to Charity cashcentral.com


A few caveats with this. First, you have to give to a qualified public charity. Check on their website that you are giving to a 501(c)3 organization before you give. You can also check on the IRS website for a list of organizations you may be able to donate to.

Second, it has to be cash giving, so giving your old sweater to Goodwill unfortunately doesn't count. Third, if you give over $250 to an organization, you have to get a "written acknowledgement" of the gift. That just means you want to be sure to ask for a receipt when you send the money to the charity.

A lot of charities have been hit very hard because of COVID-19, and making sure that they have the resources available to continue to help people can be really important for the people who rely on the generosity of others.

With the CARES Act, you can help make sure that charities you believe in are able to continue their work while also saving yourself money come tax time. It might be time to speak with a financial advisor to set charitable goals for 2020 and 2021.

If interested in opening a charitable giving account, we recommend Fidelity Charitable. They can help identify private foundations and charities to support, as well as recommend grants. Over time you can grow your donor advised funds, tax free and look into donating stocks or donating with a credit card.


Fidelity Charitable also provides a helpful charitable giving tax savings calculator.

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When you are newly hitched and learning how to combine your essential legal and financial information as well as your accounts, it can be confusing.

Many people live together before getting married and have begun the process of combining accounts and sharing responsibilities. However, some people wait to do this only after marriage, and others wait until they're married to live together. Whichever path you've chosen, it's still crucial to know a few tips to manage money together as newlyweds to determine where you should begin and how you can remain on the same page.

Discussing Money Motivations

As we begin to share money with our significant other, we soon find out what one person may rank as a priority regarding money and the other may not. As such, sitting down and discussing money motivations is important. Two people who cannot agree on how to handle money may cause serious issues. This should include:

  • How to deal with money following payday. Is a percentage put into savings? Is that the day to splurge on dinner, drinks, and more?
  • The frequency and size of payments made to debts. Some people like to pay minimums, whereas others pay in full or make double payments.
  • What do you each consider money well spent? Is it a new 70" 4K television? Is it an investment? Is it paying as much debt off as possible?
  • How do you go about consulting each other before making purchases over a certain amount?

Establishing Financial Goals

After you evaluate the motivations behind your money and how it should be spent, you'll need to spend time together hashing out financial goals. As newlyweds, there are certain things on your list that you're going to want to save for. How do you go about that? How much of each paycheck will you dedicate to a particular fund?

Some things in the future worth making a financial plan for include savings and paying down debts. This is the time to be honest about your current financial standing. If you're looking to buy a home, you'll want to assemble a first-time homeowner financial checklist to begin to develop topics of conversation. Some of the things to consider setting goals for are:

  • Student loans
  • Car loans
  • Future children
  • A house
  • Medical bills
  • Delinquencies on credit reports
  • Vacation and rainy-day funds
  • Emergency funds

Budgeting Together

The more honest and open you can be with each other about the money you have and now the debts you share, the better. Implementing plans for the best ways to have the things that you both desire while still taking care of existing demands is important. These can be uncomfortable things to talk about; however, these conversations are necessary.

Following these tips to manage money together as newlyweds will allow you to have a starting point for conversations that can be tough to start. The sooner you and your partner get on the same page with finances and the responsibilities that come with them, the easier the transition will be and the sooner you'll find success.

It's the dream: money you can count on to keep rolling in, even while you sleep.

Passive income isn't entirely passive, of course. You'll put in work up-front to get the profits rolling, so don't relax in your recliner just yet. But with so many potential sources of passive income available to you, picking one or several will mean that the day you can finally kick back will draw steadily closer.

Rental Properties

Real estate is a tried-and-true wealth builder for a simple reason: people will always need somewhere to live. Research the market in a growing community until you know a good deal when you see it. You can maximize rent by fixing up a deteriorating property or upgrading a mediocre one. The key is to hire a property manager to do all the day-to-day landlord duties for you—and you'll need a good one. Smart investors put their profits in another property and repeat the process until they have a diverse portfolio.

A YouTube Channel

You can start a blog if you're more comfortable hiding behind a computer, but consumers are more likely to prefer video content. Post a series of “how-to" videos to answer questions about whatever you're an expert in.

You can put up any content you want, but if you don't want to commit to regularly updating it, focus on “evergreen" topics that will draw clicks for eternity. Ads will create your income, especially if your channel grows in popularity. Better yet, sign up for affiliate marketing. If you recommend a product and provide a link to buy it, you'll get a small percentage of those transactions.

Auto Advertising

If you don't mind vinyl-wrapping your car with an ad for a company, you can get cash just driving around and running your errands. Make sure you contact a reputable company that doesn't ask for any money from you; if they're the real deal, they'll evaluate your car, your driving habits, your area, and more. Bonus: the brighter the ad, the easier it'll be to find your vehicle in the parking lot.

Digital Products

What's something that people will pay for but doesn't require shipping on your part? Finding that item is what can supplement your income indefinitely. Write an e-book, charge for your cross-stitching patterns, design prints that people can digitally download, invent an app, record a “masterclass," or whatever else you want. Every time someone new discovers it, the cash register rings. With a little more effort, this is a potential source of passive income for you that can continue to grow. Once you build up a customer base, they might want more products. The good part is that it's up to you whether you wish to give it to them.

Airbnb is a great option while traveling, but you should protect yourself from damage charges from unscrupulous hosts.

Airbnb offers an affordable option for people looking to be more comfortable as they travel.

However, there are downsides to staying in a host's home rather than a hotel. Whereas hotels are designed for constant streams of visitors and often have furniture built to last, at an Airbnb, you may be staying on old or cheap furniture that a host is using in order to maximize their profits.

And while most reputable hotels will have regular room inspections from staff to check for any wear and tear, Airbnb damage disputes are oftentimes he said, she said situations. If you are in an Airbnb and something breaks, there are a few steps you should take in order to ensure that you are not on the hook for damages out of your control.

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