When preparing your tax returns, don't overlook deductions for charitable donations, medical expenses and professional dues.
Spouses can maximize their donation credits by combining charitable donations on one return.
Gifts of life insurance provide donation tax credits
A "permanent" life insurance policy (e.g. a whole life or universal life policy) can be donated to a charity by transferring the ownership of the policy to the charity and having the charity become the beneficiary of the policy. You will be eligible for a donation tax credit based on the policy's cash surrender value. If, after donating the policy, you continue to pay the premiums on the policy, the premiums will also be eligible for a donation tax credit.
Note: There may be adjustments if there are policy loans.
