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Solving the tax puzzle

July 16, 2009

OK, it's really just the 1040 puzzle.

And iI'm talking about an actual jigsaw puzzle, not the way to finally put together all our various tax pieces.

Form 1040 tax puzzle insert1 The TaxProf Blog reports that two of his fellow tax professors from Indiana University Maurer School of Law in Bloomington have completed a puzzle that depicts the granddaddy of individual tax returns. 

As TaxProf notes, and shown in the image excerpt at left (and the full puzzle photo on his site), even when dealing with taxes for fun and games, there are still "loopholes."

Unfortunately, I couldn't locate anyone selling Form 1040 jigsaw puzzles.

My Googling, however, did turn up a custom jigsaw puzzle maker who includes a tax component in connection with his product.

The Connecticut-based MGC's Custom Made Wooden Jigsaw Puzzles tells potential customers that "from time to time, you will see puzzles listed on this page that you can fully deduct from your annual income taxes."

The puzzle manufacturer periodically offers certain of his creations for sale, but instead of buying one of these designated puzzles, you send a check for the product amount and make it payable to one of the charities the company has selected.

MGC gives your check to the specified charity on your behalf. Then MGC sends you the puzzle, a donation on its part. It also covers the shipping costs for you.

As long as your check is payable to a qualified charity, this somewhat roundabout process should be fine with the IRS.

However, it looks to me that since you are getting something — a custom, handmade wooden puzzle — for your donation, then the value of that puzzle has to be accounted for in your deduction amount.

So if you "donated" an amount that reflects the value of the product incentive you received, then you'll zero out your deduction. In fact, you got more than you gave, since you didn't even have to pay delivery costs.

The loophole here might be that since the charity itself didn't offer the gift, you don't have to take that into consideration. Any tax pros want to weigh in with your take on this process?

But even if you don't get a tax break, at least you get the puzzle and the charity gets some money. And MGC shows that it's creative in more than just making puzzles!

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It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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