Tax Planning: Charities and Tax Deductions
It’s the season of giving, and now is a great time for you to become involved with your favorite charity. Making donations can help you to score some additional tax deductions. In this blog, LongSchaefer explains how you can give and get a bit more this tax season.
Rules of Charitable Deductions
The following rules act as a quick-guide that will allow you to understand some specifics of how to claim your charitable contributions.
- Know where to claim- Your claims will all be made on Schedule A of Form 1040.
- If you claim it, donate it– Do not try to fudge your donations. If you didn’t donate it, do not try to say that you did.
- Record your donations- If you are donating, make sure that you keep track of where you have donated, when you donated, and the amount you gave. Bank statements can help you to prove your donations.
- Non-cash? No problem. Make a list of your donations, carefully noting the condition of the items and the value of those items. Many charities provide valuation guides on their websites.
- Picture? Perfect!- Take pictures of the items you donate so you can show they are in good condition. It also shows how much you have donated.
- Know Your Limits- If you’re donating to a political party campaign, you cannot deduct that. You cannot deduct gifts or contributions to for-profit businesses.
Contact LongSchaefer Today
Still not sure of all the nuances related to charity deductions, or deductions in general? Connect with the professionals at LongSchaefer today. We have worked diligently with the Cincinnati, OH, community since 1981. We believe in providing affordable tax and business services to our customers. Contact us online today, or call us at (513) 854-0217.