Individuals can give any number of people up to $13,000 each in 2009 without gift tax consequences. So if you want to help a family member who has lost their job, or is struggling financially, one way to do so would be to give them cash. Any amount under $13,000 is considered tax free income to the person who receives it.If you are looking for ways to lower your tax liability, and you already itemize your deductions, consider making a donation to your favorite charity (or charities) donations to 501c3 designated charities can be deducted on your schedule A and will dollar for dollar reduce your taxable income.
Make your donation before December 31st and be sure to get a letter of acknowledgment that included the amount you donated and the non-profits federal identification number.
