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Charity Donations have Tax Deductions

Many would think that taxes do not or should not apply when it comes to taxes. Unfortunately we don’t exactly get what we want. Donations to charities are tax deductible expenses. These deductions though may lower your taxable income and lower you tax bill. One thing to know is that this may not exactly apply to everyone who wishes to deduct from their charitable donations. Your tax deductions must be itemized for you to be able to claim any charity. The IRS themselves mentioned in the IRS Publication 78 that “You may deduct charitable contributions of money or property made to legit qualifies organizations if you itemize you deductions”. You are actually presented with a set of rules on claiming you charitable contribution deduction. One would be the fact that what you donate must actually be cash or a property. Promises to donate cannot be deductible until the payment is actually made. You must also be able to donate to a qualified tax exempt organization. Usually, charities will be the ones to let you know whether or not they have received their tax exempt status. Some orgs. However are not required to obtain the status from the IRS. Usually these are churches and other religious orgs. As it is stated above, it is very important that you do not forget to itemize. Since giving to charity would be an extremely great tax plan, it really only applies to those people who are eligible to itemize their deductions. A good tip as well would be keeping records of everything mostly your requirements. This would basically include saving cancelled checks, letters from your charities and appraisals for properties which may have been previously donated. Lastly keeping records of your charity mainly the charitable contributions. You must keep a record of all donations which are cash that you may have made to a charity. If you cancel any records, you must record that as well. Regardless of the amount donated, records must be kept in order to claim the right amount of tax relief on all your gifts to charities. By doing all this, you will be able to get tax relief for any gifts and donations you have made to charity.

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