My phone is blowing up today, with every app suggesting that if I’m stumped for a present or two, considering giving a digital gift card from their establishment. Ditto my email.
It’s not a bad idea. But the key here is to make sure that the gift card is real.
So, on this Christmas Eve I’m harking back not to herald angels, but to my post earlier this month noting that gift cards are for good boys and girls, not to pay IRS tax bills.
Avoid gift card scams: That post looks at how crooks tamper with actual plastic gift cards, which are easily accessible in store displays, and then get access to the funds before the intended recipient.
And since this is a tax blog, the post also notes that gift cards also play a role in tax scams.
All this is not to scare you off of getting an easy and generally well-received last-minute Christmas gift, either digitally or as a card you can wrap or stuff in a stocking.
Just be careful.
Yes to charitable donations: Another good eleventh-hour gift is a charitable donation in someone’s name.
This works well for family and friends who are more interested in giving than getting. They'll be thrilled you decided to support their favorite cause. Doing so in their name is just an added bow on the charitable gift.
Charities are happy to get donations online. Most also offer you the option to honor a person in making the gift. The nonprofit then typically notifies the recognized person, electronically or via a mailed letter, of the gift in their name.
That's what happens when the charity is real. But here, as with gift cards, crooks too often take advantage of honest gift givers.
No to charitable scams: Criminals set up fake charities to get your money and personal information so they can use your credit card or bank account info, as well as personal data to, among other things, file false tax returns claiming fraudulent refunds in the soon-arriving new tax season.
So be sure you donate to a legitimate charity, during the holidays or any time of the year. My post 5 ways to determine whether a charity is naughty or nice can help here.
When you do, as the actual donor of a gift in someone’s name you also might be able to claim the contribution as a tax deduction if you itemize. I know. That’s not why you’re doing it. But, as noted earlier, this is a tax blog, even on Christmas Eve.
And speaking of Christmas Eve, I’m off now to make final holiday preparations, most of which involve food, not presents. Hey, whatever brings you holiday cheer, right?! 🎅😉🎅
Here’s wishing you and yours a safe, happy, and joyful Christmas Eve and Merry Christmas!
You also might find these items of interest:
- 5 gifts ideas from Tax Santa
- Tax and other gifts of the MAGI
- Pets as presents and potential tax deductions
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