ARE YOUR CHARITABLE CONTRIBUTIONS DEDUCTIBLE?
Tax Season IS HERE and it is time to gather up all those tax documents for your upcoming tax appointment! Did you make any charitable donations this year? How do you know what is deductible?
Five Helpful Tips on Charitable Contributions
- Contributions must be made to qualified organizations to be deductible. You cannot deduct contributions made to specific individuals, political organizations and candidates.
- You cannot deduct the value of your time or services. Nor can you deduct the cost of raffles, bingo or other games of chance. However, you CAN deduct costs directly related to the use of your car in giving services to a charitable organization. (Standard Mileage Rate 14 cents)
- If your contributions entitle you to merchandise, goods or services, including admission to a charity ball, banquet, theatrical performance or sporting event, you can deduct only the amount that exceeds the fair market value of the benefit received.
- VERY IMPORTANT: Regardless of the amount, to deduct a contribution of cash, check, or other monetary gift, you must maintain a bank record, payroll deduction records or a written communication from the organization containing the name of the organization, the date of the contribution and amount of the contribution.
- For donations by text message, a telephone bill will meet the record-keeping requirement if it shows the name of the organization receiving your donation, the date of the contribution, and the amount given.
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