3. Donations Count
If you are generous enough to donate your time, money, or used goods to charity, keep track. Any money, cash, checks, etc. given to charity reduce your taxable income. So if you made $50,000 and donated a total of $5,000 to your church, local shelter, or any other accredited 501c3 charity, you may end up claiming only $45,000 in taxable income. Used goods also have monetary value and even miles driven for charitable purposes can be deducted.