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What’s the Point of a Donor-Advised Fund?

A reader writes in, asking:

“Can you help me understand the point of ‘donor advised’ funds? I keep reading about them, but I do not see how this is any better than just donating to a charity directly.”

First a bit of background information: a donor-advised fund is a nonprofit entity, often run by a financial institution (e.g., Vanguard/Fidelity/Schwab). When you contribute money to the fund, it counts as a charitable contribution for tax purposes (i.e., you get an itemized deduction). And money you contribute to the fund goes into an account over which you have (limited) control. The money is no longer your money — you can’t take it out and spend it on groceries. But you maintain control of how it is invested. And at any time you can choose to have distributions (“grants”) made from the account to one or more charities of your choosing. (Such grants have no tax impact for you, because you’re not actually a party to those transactions. They are transactions between the fund and the ultimate charities.)

There are three main reasons why you might benefit from using a donor-advised fund:

  • You get the tax deduction now, without yet needing to figure out how much you want to give to which charities.
  • They provide anonymity, if desired.
  • They make it easier to donate securities (e.g., shares of mutual funds or stocks).

Note that none of these is a tax benefit.

Some companies that run donor-advised funds promote them as if they offer tax benefits, when in reality it’s just the same tax benefits that come from charitable contributions in general. That is, you don’t save any taxes with a donor-advised fund that you wouldn’t have saved by simply donating directly to the ultimate charitable recipient(s) instead of donating to the donor-advised fund.

These benefits are administrative benefits. But administrative benefits can be valuable.

Tax Deduction Now, Ultimate Decision Later

Just to reiterate, once you’ve contributed money to a donor-advised fund, that money is no longer your money. You cannot take it back out to spend on groceries. You cannot distribute the money to your nephew, even if he really needs it. And the money does not go to your kids when you die.

So, in that sense, the decision must be made before contributing to the fund.

But there might be years when, based on your budget and tax planning, you decide that you want to donate $X. And it’s often the case that this decision is made close to year-end (i.e., after you have a good idea as to your other various amounts of income/deductions). And you might not, right at that moment, want to have to figure out exactly how many dollars go to which charities. So you can make a contribution to your donor-advised fund, and then take your time with determining the ultimate recipients of the dollars. (Though the ultimate recipients do have to be charitable organizations.)

Similarly, a common tax planning strategy is to “bunch” itemized deductions into one year. For instance, if a single person would normally give $5,000 to charities each year, instead they could donate $25,000 every 5 years. The advantage of doing so is that, if they donate $5,000 every year, they may not get any tax advantage from the donations, as they’ll end up using the standard deduction instead. But by deduction bunching, they can claim a large itemized deduction in one year and still use the standard deduction in the other years.

Deduction bunching can be implemented without a donor-advised fund (i.e. just make large donations every several years rather than smaller donations every year). So again, the donor-advised fund isn’t providing any tax savings. But with a donor-advised fund you can make the tax/budgeting decision now and make the which-charities-get-the-money decision later. So again, not a tax benefit, but a noteworthy administrative benefit.

Anonymity, if Desired

The overwhelming majority of donations made in the U.S. are not anonymous. And that’s not terribly surprising. Most people want to be thanked. Plus, the simplest ways of donating to a charity (i.e., writing a check or pulling out the credit card) result in donations that aren’t anonymous.

But if you want to remain anonymous for any reason (even if that reason is just to stay off the mailing lists), donor-advised funds can be helpful. That’s because, when you make a grant from the fund to a charity of your choosing, you can select whether the grant will be anonymous or not. If you choose to remain anonymous, the charity would see, for example, that the donation came from Fidelity Charitable, but they wouldn’t know who the actual original donor was. The donor-advised fund serves as a middleman, shielding your identity.

Simplification of Donating Securities

When you donate assets a) that are not held in retirement accounts such as an IRA, b) that have gone up in value, and c) that you have owned for longer than one year, you get to claim an itemized deduction for the current market value of the asset and you do not have to pay tax on the appreciation. As such, donating such appreciated assets can be a very tax-savvy way to give.

But many charities, especially smaller ones, simply aren’t set up to accept donations of anything other than cash.

Donor-advised funds, on the other hand, are ideally situated to accept donations of securities, given that they’re often run by financial institutions. In fact, if your donor-advised fund is through the same company where you have your taxable brokerage account, the web interface will generally have a very easy way to simply select shares for donation and have them transferred to the donor-advised fund. And then from there, the fund can make a cash grant to the charity of your choosing.

What About Tax-Free Growth?

Sometimes people promote donor-advised funds by mentioning that they allow the money to remain invested and grow, tax-free prior to being distributed to the ultimate charity. But again, this benefit is just an illusion. If you donate money directly to a charity, that charity can invest the money, and any gains that they earn will be tax-free (because they’re a tax-exempt organization).

Some people counter that most charities would not choose to invest the money (i.e., they would spend it shortly after receiving the donation). That may be true of course. But all that the donor-advised fund is achieving in this regard is depriving the charity of the choice to spend the money immediately. In most cases I would argue that the charity itself has better knowledge of its goals, plans, and financial circumstances than the donor would have and is therefore in a better position to make this decision.

For More Information, See My Related Book:

Book3Cover

Taxes Made Simple: Income Taxes Explained in 100 Pages or Less

Topics Covered in the Book:
  • The difference between deductions and credits,
  • Itemized deductions vs. the standard deduction,
  • Several money-saving deductions and credits and how to make sure you qualify for them,
  • Click here to see the full list.

A testimonial from a reader on Amazon:

"Very easy to read and is a perfect introduction for learning how to do your own taxes. Mike Piper does an excellent job of demystifying complex tax sections and he presents them in an enjoyable and easy to understand way. Highly recommended!"

Which Spouse’s IRA Should We Spend From (or Convert)?

A reader writes in, asking:

“You’ve written before about how to decide which accounts to spend from in terms of Roth, tax deferred, or taxable. [Mike’s note: see “Which Dollars to Spend First Every Year in Retirement” and “Roth Conversion Planning: a Step-by-Step Approach.”] If my husband and I want to spend, say, $60,000 from traditional IRA accounts this year or we want to do a $60,000 Roth conversion, how should we decide how much of that should come from my traditional IRA as opposed to his traditional IRA?”

Firstly to state an important caveat: the rest of the article will assume that we’re talking about a married filing jointly situation. If you and your spouse intend to file separately in a given year, then the simple answer is that it probably makes sense to prioritize spending (or conversions) from the IRA of the spouse who would pay a lower tax rate on those dollars of income in that year.

For a married couple filing jointly, other than making sure that each spouse meets their required minimum distribution (RMD) for the year (if applicable), the default strategy is simply to take dollars entirely from the IRA of the older spouse, because that will have the greater effect on minimizing future RMDs. RMDs are based on your life expectancy, so the spouse born in the earlier year has to distribute a greater percentage of their account balance each year. To use the reader’s example, if $60,000 were taken out of the older spouse’s traditional IRA, that would result in a greater reduction of future RMDs than taking $60,000 from the younger spouse’s IRA. And, all else being equal, smaller RMDs is a good thing because it gives you greater flexibility.

But there are other factors that can be more important.

For instance, if one spouse has a significant amount of basis in traditional IRAs (i.e., from having made nondeductible contributions), distributions/conversions of that spouse’s balances may be more advantageous due to a lower percentage of the distribution/conversion being taxable.

State income tax considerations can also play a major role.

As one example: Colorado offers a deduction of up to $24,000 for “pension/annuity” income for people age 65+ ($20,000 for people age 55-64). “Pension/annuity income” includes Roth conversions and other distributions from tax-deferred accounts. And this deduction operates on a per-person basis. So if you and your spouse (both age 65+, for our example) collectively wanted to convert $60,000 from tax-deferred accounts this year, and you have no pension/annuity income this year other than this intended conversion, you could each convert $30,000, so that only $6,000 for each of you ($12,000 in total) would be taxable at the state level. In contrast if you did $60,000 all from one spouse’s traditional IRA balance, $36,000 would be taxable at the state level.

And in some cases there may be non-tax factors to consider. For instance, if you and your spouse each have children from a prior marriage, and you’re each leaving your IRAs to your respective children, then there are what we might call “fairness factors” at play (e.g., perhaps it feels most fair to spend 50/50 from each spouse’s assets — or some other particular ratio — regardless of what might be best from a tax planning point of view).

For More Information, See My Related Book:

Book3Cover

Taxes Made Simple: Income Taxes Explained in 100 Pages or Less

Topics Covered in the Book:
  • The difference between deductions and credits,
  • Itemized deductions vs. the standard deduction,
  • Several money-saving deductions and credits and how to make sure you qualify for them,
  • Click here to see the full list.

A testimonial from a reader on Amazon:

"Very easy to read and is a perfect introduction for learning how to do your own taxes. Mike Piper does an excellent job of demystifying complex tax sections and he presents them in an enjoyable and easy to understand way. Highly recommended!"

Qualified Charitable Distributions from an IRA with Basis

A reader writes in, asking:

“I’ve seen articles about how to calculate the taxable amount of an RMD when the distribution from the Traditional IRA contains both pre-tax and post-tax dollars.

I’ve seen articles about how taking a QCD from your Traditional IRA reduces the taxable amount of your RMD to be reported to the IRS.

But I have not seen anything (and research has come up empty) about taking QCDs from a “mixed” Traditional IRA.  Specifically, (a) how to calculate the taxable amount of the RMD to be reported on Form 1040 and (b) how to calculate the remaining basis of the Traditional IRA.”

First, let’s give a bit of background on what this reader is asking about. Qualified charitable distributions (QCDs) are distributions from an IRA directly to a charity. And despite being a distribution from a traditional IRA, they are not taxable. (See “Qualified Charitable Distributions vs. Donating Appreciated Stock” for more details.)

And, the other topic in question here is how distributions work from a traditional IRA when you have basis (i.e., when you have made nondeductible contributions to your traditional IRA). When you have basis in your traditional IRA, a portion of each distribution is nontaxable. Specifically (when there’s no QCD also involved), that nontaxable percentage is calculated as:

  • Nontaxable percentage of the distribution = Your basis in the traditional IRA ÷ (traditional IRA balance at the end of the year + distributions/rollovers/conversions out of traditional IRA during the year).*

When we add a qualified charitable distribution into the mix as well, then the first thing to know is that the QCD is always nontaxable. And, provided that your non-basis amounts in the IRA exceed the amount of the QCD, then:

  • The QCD does not reduce your basis, and
  • For the sake of calculating how much of the other distributions are taxable/nontaxable (and how much basis is left in the IRA afterwards), it’s as if the QCD amount was gone from the IRA before the year even began.**

This is because the QCD is not included at all on Form 8606 as a distribution. (On the line for reporting distributions, the form itself explicitly says: “do not include […] qualified charitable distributions.” The instructions say the same thing.)

Let’s Walk Through an Example

Imagine that you only have one traditional IRA, and at the beginning of the year, the account balance is $100,000 and you have $12,000 of basis in the IRA (from having made $12,000 of nondeductible contributions). During the year you make a qualified charitable distribution of $7,000 and you take other distributions of $6,000. At the end of the year, the IRA balance is $90,000.

First things first: the QCD is nontaxable. Because those are just the rules for QCDs.

Then to calculate how much of the $6,000 of other distributions are taxable, we follow our math from above:

  • Nontaxable percentage = basis ÷ (balance at the end of the year + distributions/rollovers/conversions out of the account during the year).
  • Nontaxable percentage = 12,000 ÷ (90,000 + 6,000) = 12.5%.

Remember, we exclude the QCD from this math. That’s why the denominator is $96,000 rather than $103,000.

So, 12.5% of the $6,000 distribution is nontaxable ($750). The remaining 87.5% of the $6,000 distribution is taxable ($5,250). In total, $13,000 of distributions were made from the IRA, and $5,250 is the amount that would be taxable. And at the end of the year, you would have $11,250 of basis in the IRA (because $750 of the basis was distributed tax-free this year).

*If you have multiple traditional IRAs, they are considered to be one IRA for this purpose.

**If the amount of the distribution to charity exceeds your non-basis amounts in traditional IRAs, then the QCD is limited to your non-basis amounts, because QCDs are limited to the amount that would otherwise be taxable. For example, imagine that your traditional IRA balance includes $6,000 of basis from nondeductible contributions and $2,000 of earnings — and that’s it. And you have $5,000 distributed directly to a charity. The QCD is limited to $2,000 because it’s only the earnings that would normally be taxable. The rest of the distribution ($3,000) is still nontaxable, but it’s considered to be nontaxable distribution of basis rather than QCD.

For More Information, See My Related Book:

Book3Cover

Taxes Made Simple: Income Taxes Explained in 100 Pages or Less

Topics Covered in the Book:
  • The difference between deductions and credits,
  • Itemized deductions vs. the standard deduction,
  • Several money-saving deductions and credits and how to make sure you qualify for them,
  • Click here to see the full list.

A testimonial from a reader on Amazon:

"Very easy to read and is a perfect introduction for learning how to do your own taxes. Mike Piper does an excellent job of demystifying complex tax sections and he presents them in an enjoyable and easy to understand way. Highly recommended!"

What’s the Most Tax-Efficient Way to Give? (Donating Appreciated Securities, Qualified Charitable Distributions)

A reader writes in, asking:

“I will be turning 70 1/2 next year and one way or another I plan on giving a good sum to charity. What is the most economical way to donate?

  1. QCD from IRA
  2. Roth IRA
  3. Taxable account
  4. Take from income.

I take the standard deduction for federal tax. What factors do I need to take into consideration?”

Firstly: What’s a QCD?

A qualified charitable distribution (QCD) is a distribution from a traditional IRA directly to a charitable organization (i.e., the check is made out directly to the organization rather than to you). Unlike most distributions from a traditional IRA, QCDs are not taxable as income. And they can be used to satisfy required minimum distributions (RMDs) for a given year. QCDs are limited to $100,000/year (per spouse, if you’re married).

To qualify for qualified charitable distributions you must be at least age 70.5. (Yes, it really is age 70.5. The law that increased the age for RMDs to 72 did not change the age for QCDs.)

Also note that QCDs work on a calendar year basis. That is, there’s no “I’m doing this in March of 2022, and I want it to count for 2021” option as there is for contributions to an IRA.

Which Type of IRA to Give From

Giving via QCDs from a traditional IRA is much better than donating dollars from a Roth IRA. To you, a dollar in a Roth IRA is worth a dollar of spending, whereas a dollar in a traditional IRA is worth less than a dollar of spending (because some part of the dollar would be taxed when you took it out of the account, before you could spend it).

In contrast, to a tax-exempt non-profit, a dollar from a traditional IRA is worth a dollar of spending. When you give money to a charity via a QCD from a traditional IRA, the charity doesn’t have to pay tax on that money.

In other words, from the charity’s perspective, receiving $1,000 from a traditional IRA (via a QCD) is just as good as receiving $1,000 from a Roth IRA. But giving the money from the traditional IRA effectively costs you less (because it wasn’t really worth $1,000 to you to begin with).

Donating via QCDs or Taxable Assets

When choosing between QCDs or donating taxable assets, one advantage of QCDs is that you can take advantage of them while claiming the standard deduction. Donations from taxable assets (including regular checking account dollars) give you an itemized deduction. And that’s only valuable to the extent that your itemized deductions (in total) exceed the standard deduction for the year.

Example: Sophia is single, age 65+, so her standard deduction for 2021 is $14,250. If her itemized deductions other than donations come to $10,000, then the first $4,250 of donations from taxable assets doesn’t give her any tax benefit at all.

QCDs also have the advantage that they reduce your adjusted gross income, which can sometimes produce additional beneficial results, such as allowing you to qualify for another deduction/credit or bringing your income below a particular IRMAA threshold. In contrast, the itemized deduction from donating taxable assets does not reduce your AGI and therefore will not produce any such effects.

Conversely, an advantage of donating assets from a taxable account is that, if you donate assets that have gone up in value and that you have owned for longer than one year, you get to claim an itemized deduction for the current market value of the asset and you do not have to pay tax on the appreciation. (Note: when donating taxable property that you have held for one year or less, your itemized deduction is limited to your basis in the property.) In other words, when donating appreciated taxable assets that you have held for longer than one year, the itemized deduction is saving you money at your marginal tax rate for ordinary income, and you’re saving some additional money due to not having to pay tax on the appreciation.

So in some cases donating via QCDs will be preferable, while in other cases donating appreciated securities will be preferable. An important factor here is how much the taxable asset has appreciated. If it has gone up, say, 10% since you bought it, then getting to avoid taxation on the 10% gain isn’t such a big deal. Conversely if it is now worth ten times what you paid for it, avoiding taxation on that gain — via donating the asset — could be a very big deal. (I say “could” in that prior sentence, because there’s a possibility that the gain could have avoided taxation anyway, if it were left to heirs who would then get a step-up in cost basis.)

Which Taxable Assets to Give?

And with regard to donating taxable assets, donating appreciated assets that you have owned for longer than one year is strictly better than donating other taxable account dollars (e.g., cash in a checking account). And again that’s because you do not have to pay tax on the appreciation, while still getting to claim an itemized deduction for the current market value of the assets.

For example, imagine that you have a holding with a $10,000 market value and a $6,000 cost basis (i.e., there is a $4,000 unrealized capital gain) and you have held the asset for longer than one year. If you donate this asset, you’d get an itemized deduction for $10,000. Conversely, if you were to donate $10,000 of cash, you would also get an itemized deduction for $10,000. But donating $10,000 of cash means giving up $10,000 of spendable value, whereas donating the $10,000 appreciated holding actually costs you somewhat less (because if you were to sell it, you’d have to pay tax on the $4,000 of appreciation, which would leave you with somewhat less than $10,000 to spend).

Overall Order of Priority

To briefly summarize, for somebody age 70.5 or older, the typical order of preference is:

  1. Donating appreciated taxable assets with a holding period longer than one year or donating via QCDs, depending on circumstances,
  2. Donating via whichever of the two options above was less preferable,
  3. Donating taxable account cash (e.g., checking/savings balances),
  4. Donating appreciated taxable assets that you have held for one year or less,
  5. Donating Roth IRA dollars, and finally
  6. Donating taxable assets where the current market value is less than your basis. (This one is really bad because your deduction is limited to the market value, and you don’t get to claim a loss for the decline in value. Better to sell the asset, claim the capital loss, then donate the resulting cash.)

For somebody not yet age 70.5 (and therefore ineligible for QCDs), the typical order of preference would be:

  1. Donating appreciated taxable assets with a holding period longer than one year,
  2. Donating taxable account cash (e.g., checking/savings balances),
  3. Donating appreciated taxable assets that you have held for one year or less,
  4. Donating Roth IRA or traditional IRA dollars, and finally
  5. Donating taxable assets where the current market value is less than your basis.

But as always, tax planning is case-by-case. A household could have circumstances such that the above would need to be rearranged in some way.

For More Information, See My Related Book:

Book3Cover

Taxes Made Simple: Income Taxes Explained in 100 Pages or Less

Topics Covered in the Book:
  • The difference between deductions and credits,
  • Itemized deductions vs. the standard deduction,
  • Several money-saving deductions and credits and how to make sure you qualify for them,
  • Click here to see the full list.

A testimonial from a reader on Amazon:

"Very easy to read and is a perfect introduction for learning how to do your own taxes. Mike Piper does an excellent job of demystifying complex tax sections and he presents them in an enjoyable and easy to understand way. Highly recommended!"

2022 Tax Brackets, Standard Deduction, and Other Changes

The IRS recently published the annual inflation updates for 2022. If you have questions about a particular amount that I do not mention here, you can likely find it in the official IRS announcements:

Single 2022 Tax Brackets

Taxable Income
Tax Bracket:
$0-$10,275 10%
$10,275-$41,775 12%
$41,775-$89,075 22%
$89,075-$170,050 24%
$170,050-$215,950 32%
$215,950-$539,900 35%
$539,900+ 37%

 

Married Filing Jointly 2022 Tax Brackets

Taxable Income
Tax Bracket:
$0-$20,550 10%
$20,550-$83,550 12%
$83,550-$178,150 22%
$178,150-$340,100 24%
$340,100-$431,900 32%
$431,900-$647,850 35%
$647,850+ 37%

 

Head of Household 2022 Tax Brackets

Taxable Income
Tax Bracket:
$0-$14,650 10%
$14,650-$55,900 12%
$55,900-$89,050 22%
$89,050-$170,050 24%
$170,050-$215,950 32%
$215,950-$539,900 35%
$539,900+ 37%

 

Married Filing Separately 2022 Tax Brackets

Taxable Income
Marginal Tax Rate:
$0-$10,275 10%
$10,275-$41,775 12%
$41,775-$89,075 22%
$89,075-$170,050 24%
$170,050-$215,950 32%
$215,950-$323,925 35%
$323,925+ 37%

 

Standard Deduction Amounts

The 2022 standard deduction amounts are as follows:

  • Single or married filing separately: $12,950
  • Married filing jointly: $25,900
  • Head of household: $19,400

The additional standard deduction for people who have reached age 65 (or who are blind) is $1,400 for each married taxpayer or $1,750 for unmarried taxpayers.

IRA Contribution Limits

The contribution limit for Roth IRA and traditional IRA accounts is unchanged at $6,000.

The catch-up contribution limit for people age 50 or over does not get inflation adjustments and therefore is still $1,000.

401(k), 403(b), 457(b) Contribution Limits

The salary deferral limit for 401(k) and other similar plans is increased from $19,500 to $20,500.

The catch-up contribution limit for 401(k) and other similar plans for people age 50 and over is unchanged at $6,500.

The maximum possible contribution for defined contribution plans (e.g., for a self-employed person with a sufficiently high income contributing to a solo 401(k)) is increased from $58,000 to $61,000.

Health Savings Account Contribution Limits

For 2022, the maximum HSA contribution for somebody with self-only coverage under a high deductible health plan is $3,650. The limit for somebody with family coverage under such a plan is $7,300.

The HSA catch-up contribution limit for people age 55 and over is not inflation adjusted, so it remains at $1,000.

Capital Gains and Qualified Dividends

For 2022, long-term capital gains and qualified dividends face the following tax rates:

  • 0% tax rate if they fall below $83,350 of taxable income if married filing jointly, $55,800 if head of household, or $41,675 if filing as single or married filing separately.
  • 15% tax rate if they fall above the 0% threshold but below $517,200 if married filing jointly, $488,500 if head of household, $459,750 if single, or $258,600 if married filing separately.
  • 20% tax rate if they fall above the 15% threshold.

Alternative Minimum Tax (AMT)

The AMT exemption amount is increased to:

  • $75,900 for single people and people filing as head of household,
  • $118,100 for married people filing jointly, and
  • $59,050 for married people filing separately.

Annual Gift Tax Exclusion

For 2022 the annual exclusion for gifts has increased from $15,000 to $16,000.

Estate Tax

The estate tax exclusion is increased to $12,060,000 per decedent.

Pass-Through Business Income

With respect to the 20% deduction for qualified pass-through income, for 2022, the threshold amount at which the “specified service trade or business” phaseout and the wage (or wage+property) limitations begin to kick in will be $340,100 for married taxpayers filing jointly and $170,050 for single taxpayers, people filing as head of household, and for married people filing separately.

For More Information, See My Related Book:

Book3Cover

Taxes Made Simple: Income Taxes Explained in 100 Pages or Less

Topics Covered in the Book:
  • The difference between deductions and credits,
  • Itemized deductions vs. the standard deduction,
  • Several money-saving deductions and credits and how to make sure you qualify for them,
  • Click here to see the full list.

A testimonial from a reader on Amazon:

"Very easy to read and is a perfect introduction for learning how to do your own taxes. Mike Piper does an excellent job of demystifying complex tax sections and he presents them in an enjoyable and easy to understand way. Highly recommended!"

2021 Editions: Taxes Made Simple, Sole Proprietor Taxes, LLC vs S-Corp vs C-Corp

Just a quick note today: the 2021 editions of my three tax books are now available.

For anybody who has not read any of my books before, the idea is for each book in the series to provide a clear, succinct explanation of the topic in question — suitable for an initial introduction. The books do not strive to provide an expert-level depth of material. (People have often compared them to Cliffs Notes for personal finance topics.)

With regard to the paperbacks, please note that Amazon still has copies in stock for the prior editions. And when you click around on the Amazon site, it won’t necessarily direct you to the newest edition. So be careful to check for the 2021 publication date to make sure you’re on the page for the latest version. (The prior-year Kindle editions have been removed, so there shouldn’t be any way to accidentally purchase those.)

Since some people have asked about it recently, there was not a 2020 edition of Taxes Made Simple. Last year was such a whirlwind of tax legislation that every time I got the book to the point where it was almost ready for release, a new piece of legislation was passed, thereby requiring further changes. Eventually it became clear that it would be smarter to give up on the idea of a 2020 edition and begin work on a 2021 edition instead. (Since originally releasing these books in 2008, 2020 was the first year for which I did not manage to publish a new edition for all three of them.)

For More Information, See My Related Book:

Book3Cover

Taxes Made Simple: Income Taxes Explained in 100 Pages or Less

Topics Covered in the Book:
  • The difference between deductions and credits,
  • Itemized deductions vs. the standard deduction,
  • Several money-saving deductions and credits and how to make sure you qualify for them,
  • Click here to see the full list.

A testimonial from a reader on Amazon:

"Very easy to read and is a perfect introduction for learning how to do your own taxes. Mike Piper does an excellent job of demystifying complex tax sections and he presents them in an enjoyable and easy to understand way. Highly recommended!"
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