Contributions from which you benefit
Based on your answers to the tax questions, we will determine whether or not you can claim the tax deduction on the donations you made to charity during the tax year. While the eFile tax app will handle this all for you, you can learn more below about charitable contributions and your tax return.
See what kind of organizations qualify as charitable, deductible charity-related transportation costs, and other various restrictions. A deductible charitable contribution is a donation or gift made to a qualified charitable organization.
The donation must be made voluntarily and with no expectation of any substantial reward or benefit. You can also claim a deduction for the contribution of stocks. A cash donation includes money contributed by check, credit card, electronic funds transfer EFT , or payroll deduction. You must obtain a receipt for any amount of money you donate in order for your contribution to be qualified.
You can deduct the fair market value of food, clothing, or household items such as furniture, furnishings, linens, appliances, and electronics. Any donated household item must be new or used but in good condition. There is no fixed method for determining the value of donated items, but if you need guidance, please see IRS Publication - Determining the Value of Donated Property.
You may donate cars, trucks, boats or even planes. The value of your donation will be determined by how the charitable organization uses the vehicle. The organization will provide you with paperwork describing how the vehicle was used and, if it was auctioned, what the selling price was.
Be sure to obtain and keep this paperwork, even after you file your return. A non-profit organization will generally either auction a vehicle, refurbish it and donate it or sell it to a needy buyer at a vastly reduced price , or make use of it themselves. If the vehicle is used by the organization for other purposes, you may also generally deduct its fair market value.
You may not deduct the value of your time or donated professional services. If you intend to deduct your donation, make sure you are donating to a qualified charitable organization.
The following organizations generally qualify:. Before you make your donation, you may want to check with the organization to make sure they are qualified to receive tax deductible donations. You can use the IRS Tax Exempt Organization Search tool to find qualified exempt charitable organizations or organizations with a revoked federal tax-exempt status.
You may want to double check the qualified status of smaller charitable organizations before you donate. The value of these items may need an expert appraisal.
The values could depend on offers to buy the items and the timing of the donation. They especially take advantage of tragedies and disasters. Your state consumer protection office can accept and investigate consumer complaints. The FTC does not resolve individual matters. But it does track charity fraud claims and sues companies on the behalf of consumers. Contact the National Center for Disaster Fraud , if the fraud is because of a natural disaster.
But you can ask an organization not to contact you again. Follow these tips to detect common charity scam tactics :. Check out the charity with your state consumer protection office or the Better Business Bureau. Verify the name. Fake charities often choose names that are close to well established charities.
You may be able to claim a deduction on your federal taxes if you donated to a c 3 organization. To deduct donations, you must file a Schedule A with your tax form.
With proper documentation, you can claim vehicle or cash donations. Or, if you want to deduct a non-cash donation, you'll also have to fill out Form Putting the check in the mail to the charity constitutes payment. A contribution made on a credit card is deductible in the year it is charged to your credit card, even if payment to the credit card company is made in a later year.
Most, but not all, charitable organizations qualify for a charitable contribution deduction. You can deduct contributions only if they are made to or for the use of a qualified recipient. No charitable contribution deduction is allowed for gifts to certain other kinds of organizations, even if those organizations are exempt from income tax.
Contributions to individuals, foreign governments, foreign charities, and certain private foundations similarly are not deductible. All organizations rated by Charity Navigator qualify for charitable status, and you can deduct your donations to these organizations, subject to certain limitations. There are limits to how much you can deduct, but they're very high. For most people, the limits on charitable contributions don't apply. If you are giving to organizations other than those mentioned above, first consult with your tax adviser to determine whether these other ceilings will apply.
If you give an amount in excess of the applicable limitation to charity in one year, the excess is carried over for the next five years. Rules exist for non-cash donations. If you contribute property owned for more than one year, the value of the deduction is normally equal to the property's fair market value. You have an advantage when you contribute appreciated property because you get a deduction for the full fair-market value of the property.
You are not taxed on any of the appreciation, so, in effect, you receive a deduction for an amount that you never reported as income. You should clearly contribute, rather than throw out, old clothes, furniture, and equipment that you no longer use. However, bear in mind the condition of your donated goods. The IRS only permits deductions for donations of clothing and household items that are in "good condition or better.
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