Plus, if your standard deduction is more than the sum of your itemized deductions, it might be worth it to abandon itemizing and take the standard deduction instead.
If you abandon itemizing, however, you abandon taking the deduction for what you donated. Here are the standard deduction amounts by filing status. Again, if your standard deduction is more than the sum of your itemized deductions, it might be worth it to skip itemizing and thus skip claiming those tax deductible donations and take the standard deduction instead. Your charitable giving will qualify for a tax deduction only if it goes to a tax-exempt organization, as defined by section c 3 of the Internal Revenue Code.
Examples of qualified institutions include religious organizations, the Red Cross, nonprofit educational agencies, museums, volunteer fire companies and organizations that maintain public parks. An organization can be nonprofit without c 3 status, which can make it tricky to ensure your charity of choice counts.
Before you donate, ask the charity how much of your contribution will be tax-deductible. Keep track of your tax deductible donations, no matter the amount. If you made a monetary contribution, qualifying documentation includes a bank statement, a credit card statement and a receipt from the charity including date, amount and name of the organization or a cancelled check.
If you made a contribution as an automatic deduction from your paycheck through your employer, keep copies of your W-2 or pay stubs showing the amount and date of your donation. It must include the amount of cash you donated, whether you received anything from the charity in exchange for your donation, and an estimate of the value of those goods and services.
You must receive the letter of acknowledgement by the date you file your taxes see the tax deadline here for the year you made the contribution. Expenses must be directly and solely connected to the volunteer work you did; not previously reimbursed; and not personal, living, or family expenses. Your tax deductible donations can include mileage you drive to charitable events and volunteer opportunities, or mileage you used to bring items to a donation site.
You can either deduct your actual expenses using receipts for gas and similar costs, or you can take the standard mileage deduction. Only qualified organizations are eligible to receive tax deductible contributions.
To determine if the organization that you contributed to qualifies as a charitable organization for income tax deduction purposes, refer to our Tax Exempt Organization Search tool. If you receive a benefit in exchange for the contribution such as merchandise, goods or services, including admission to a charity ball, banquet, theatrical performance, or sporting event, you can only deduct the amount that exceeds the fair market value of the benefit received or expected to be received.
For contributions of cash, check, or other monetary gift regardless of amount , you must maintain a record of the contribution: a bank record or a written communication from the qualified organization containing the name of the organization, the amount, and the date of the contribution. You can see an organization's IRS designation on its profile page:. Did you attend a gala or dinner fundraiser this year?
The cost of your meal what the organization pays for the venue and your dinner is not tax-deductible, however, anything in excess of that cost may be. Contact the organization to find out.
This will help you keep track of all of your charitable giving when it comes time to file your taxes, and provide you with records of your gifts if you were to be audited. It is important that your donation receipts include language stating the date the gift was made, the amount of the gift, how the gift was made cash, stock, in-kind, etc.
For this tax year, this means your contributions must have been made between January 1, , through December 31, For specific questions about filing your taxes, deducting charitable contributions, or planning for future charitable giving, it is always best to seek the opinion of a professional accountant or financial advisor.
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