CARL WATTS & ASSOCIATES
April 12, 2010
Charitable contributions can make quite a difference on your tax return.
|
Washington DC
|
tel/fax 202 350-9002 |
|
|
|
 |
First of all to be able to deduct your charitable contributions you must file Form 1040 with Schedule A for itemized tax deductions, not standard deductions (of course it depends on which deductions are higher). |
|
To be deductible, contributions must be made to qualified organizations. |
|
 To deduct a contribution of cash, check, or other monetary gift you must keep a receiptor other written communication with the name of the organization, the date of the contribution and the amount. You must keep the telephone bill if the donation was made by text message. |
|
For contributions of cash or property equal to $250 or more you must have a bank record, payroll deduction records or a written acknowledgement from the qualified organization showing the amount of money donated and a description of any property contributed. |
|
For noncash contributions over $500 you must complete Form 8283 for Noncash Charitable Contributions. |
|
Donated items valued at more than $5,000 must be appraised by a qualified appraiser.
|
|
|
|
|
You cannot deduct the value of your time or services. |
|
Clothing and household items must be in good used condition or better. |
|
For contributions that entitle you to goods or services, including charity balls, art and sporting events, only the amount that exceeds the fair market value of the benefit is tax deductible. |
|
|
|
|
Special this year
|
|
|
People who contributed cash to charities providing earthquake relief in Haiti can claim these donations on the tax return they are completing this season (for year 2009). |