Important Tax Advice for Charitable Giving

Online, December 2, 2010 (Newswire.com) - A donation to charity qualifies as a tax-deductible expense! Donations can help reduce your taxable income and lower your overall tax bill. Not everyone will be qualified to deduct charitable donations, though, so you will have to itemize your deductions so that you may be able to claim any charity. When you are itemizing your taxes, you can claim your tax deduction on Form 1040, Schedule A. There are certain rules to follow for claiming the charitable contribution deduction. Your donation must meet certain requirements to be considered tax-deductible Here is some important tax advice for charitable giving.

Firstly, you must donate cash or property, such as donating a car, writing a check to a charity, etc. A pledge for a donation is not deductible until you have actually paid or donated your good. For instance, a car donation on your taxes is not deductible until the car is actually donated. Secondly, your donation must be to a qualified tax-exempt organization or foundation. The charity must have received their 501(c)(3) tax-exempt status, although some organizations, such as churches and other religious institutions, are not required to obtain their 501(c)(3) from the IRS. Thirdly, you must be able to break down the donations in an itemized list. Finally, you must meet the record keeping requirements., including saving canceled checks, acknowledgment letters from the charity and appraisals for the donated items, such as the appraisal from a car.

A donation can make a world of difference to the recipients of the donated material or money and it can also make a world of difference in your personal finances come tax season!