Tax Tips: Giving Gifts to Charity

Posted on Dec 10, 2015 in San Diego Lawyer, Tax Season, Taxes | Comments Off on Tax Tips: Giving Gifts to Charity

Tax Tips: Gifts to Charity

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Tax Tips for Charitable Giving

  1. You must itemize your deductions in order to claim donations to charity.
  2. Give to qualified charities: You cannot deduct donations to charities not found on the IRS Select Check tool. Check it out here before you donate. You can deduct gifts to churches, synagogues, temples, mosques and government agencies, even if the Select Check tool does not list them.
  3. Keep records: You must have a bank record or written statement from the charity in order to deduct gift money on your tax return. Gifts of money include those made by cash, check, credit card, electronic funds transfer (direct draw from your bank account) or payroll deduction (taken directly from your paycheck). Bank records that qualify as proof of your donation include cancelled checks and bank or credit card statements. For payroll deductions, be sure to keep a copy of your W-2 or any other form your employer provides as proof of your donations. You also need an additional form for each deductable donation of $250 or more. This holds true whether the $250 donation is money or property.
  4. Household goods: Household goods donated to charity, including furniture, furnishings, electronics, appliances and linens, have to be in good-used condition to claim them as a deduction on your taxes.
  5. Do it before the year ends: You can deduct any charitable gift charged to a credit card before the end of the year, even if you do not pay off that charge until the following year. Checks must be mailed, but not cashed, in 2015 to count for this year.

To read more and get the complete list of IRS tips for deducting gifts to charity click here. Also be sure to check out their other tax tips throughout the website.

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