When you donate to a charity, you may be able to take a tax deduction for the
donation. Here are eight tips to help make sure you get the most out of your
charitable donations:
- Make sure your donation is deductible. Not all donations are deductible. To
qualify for a deduction, the donation must be made to a qualified charitable
organization. You can check to see if a charity is qualified by doing a search on
the IRS website. - Get a receipt. When you make a donation, be sure to get a receipt from the
organization. The receipt should include the name and address of the
organization, as well as the amount of the donation and the date of the donation. - Keep good records. Be sure to keep good records of your donations. This
includes keeping track of the date, amount, and purpose of the donation. You will
need these records when you file your taxes. - Itemize your deductions. To deduct your charitable donations, you must
itemize your deductions on your tax return. This means you will need to fill out
Schedule A, which can be found on the IRS website. - Know the limits. There are limits on how much you can deduct for charitable
donations. For example, you can only deduct up to 50% of your adjusted gross
income for cash donations. And, you can only deduct up to 30% of your adjusted
gross income for donations of property. - Don’t double dip. You can’t deduct the same donation twice. For example, if
you donate a car to a charity and then sell it, you can only deduct the fair market
value of the car at the time of the donation. You can’t deduct the sales price of
the car. - Get help if you need it. If you have questions about deducting your charitable
donations, you can get help from the IRS. You can call the IRS at 1-800-829-1040
or visit their website at www.irs.gov. - Donate wisely. When you donate to a charity, be sure to do your research first.
Some charities are not reputable and may not use your donations in the way you
intended. You can check out a charity’s reputation by doing a search on Charity
Navigator or GuideStar.
When it comes to charitable donations, there are a lot of things to keep in mind.
But, if you follow these tips, you can make sure you get the most out of your
charitable giving.
If you have questions about how to claim a deduction for your charitable
donations, or if you need help filing your taxes this year, be sure to contact
Pinpointe Accounting Services at (520) 795-7505. Our team of experts can help make the process
easier and ensure that you get the most out of your tax return.
https://www.pinpointeaccounting.com/
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