Tax Tip: Decluttering may boost your bank account

iStock/ThinkstockYou may have a lot of things in your closet that you haven’t worn or used in years. And that could mean extra money in your pocket at tax time through deductions.

“You are able to donate goods, up to $5,000, without having an appraisal,” explains accountant Janice Hayman. “This can save quite a bit of tax money, and more the higher the bracket you are in.”

But Hayman notes, the taxman will want proof of your donation.

“You really need to have a receipt from the charitable donation you’re donating to,” she says.

If you did your spring cleaning early, Hayman says you can declutter your assets and write it off.

“You can also donate appreciated stock, which is a very fine way of not having to pay capital gains tax,” she says.

But, she notes, you’ll probably want to work with a professional tax preparer if you’re going to do that.

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