Tax
Buddy: Tips for Deducting Charitable Contributions
Itemize your contributions to charitable
organizations on IRS Form 1040, Schedule A, while preparing
to file your federal tax return. They could add up to a sizeable
tax deduction.
Tips on claiming deductions for your contributions:
• Contributions made to specific
individuals, political organizations and candidates cannot
be deducted. You can also not deduct the value of your time
or services and the cost of raffles, bingo or other games
of chance.
• A contribution is deductible only if it’s
to qualified organizations and made during the tax year.
• If you received merchandise, goods or services,
including admission to a charity ball, banquet, theatrical
performance or sporting event against your contributions,
you can deduct only the amount that exceeds the fair market
value of the benefit received.
• The fair market value is considered for the
donations of stock or other property.
• Donation of vehicles attracts special rules.
• You can claim a deduction for a charitable
contribution of $250 or more, only if you obtain a written
acknowledgment from the qualified organization.
• You must attach IRS Form 8283, Non-cash Charitable
Contributions, to your return if you claim a deduction on
your return of more than $500 for all contributed property.
• Taxpayers must complete Section B of Form 8283,
and get it appraised by a qualified appraiser, if donating
an item or a group of similar items valued at more than
$5,000.
For more information, check out Publication
526, Charitable Contributions, available at IRS.gov or call
1-800-TAX-FORM (1-800-829-3676).
Links:
• Search
for Charities or download Publication 78, Cumulative
List of Organizations
• Form 1040, U.S. Individual Income Tax Return (PDF
176K)
• Schedule A, Itemized Deductions (PDF
116K)
• Publication 526, Charitable Contributions (PDF
178K)
• Publication 561, Determining the Value of Donated
Property (PDF
101K)
