Receiving Tax Deductions for Charitable Contributions

Helping others that are less fortunate than yourself is always a great investment. Donating to qualified organizations will not only benefit people in need, but may also help lower your tax bill. Here is some helpful information to ensure you receive proper charitable deductions on your tax return.

Tax Deductions and Charitable Donations

  • All deductions must be filed on Form 1040 and each one itemized on Schedule A.
  • Make sure whomever you donate to is a qualified organization to ensure the tax deduction is legitimate.
  • Be sure to have proper proof of all your donations regardless of price. For all cash contributions you will need either records of payroll deductions, bank verification, phone bill records (for text message donations) or documentation from the organization providing date of contribution, and the amount provided.
  • If you receive some kind of exchange for merchandise, tickets to an event or other goods or services, you cannot exceed the Fair-Market-Value (FMV) price.
  • Non-cash items such as food, clothing, and other household items are worth FMV as well. Household items must be new or in good condition if used.
  • The value of vehicle donations is determined by the organization receiving the vehicle. See this guide to car donations for more information.
  • A single donation of cash or property valued at $250 or more requires written acknowledgement by the organization with amount of cash or exchange, date, description of item, and the name of the organization. When your total donations for the year are valued over $500, it would require an IRS Form 8283 with your return.
  • Transportation expenses can be deducted if you use your vehicle for medical, business, or charitable purposes. More information on how to deduct miles for charitable volunteering, click here.

Taxes may be confusing and frustrating because of all of the specific rules and regulations to abide by but do your research to ensure you receive all of the proper deductions you deserve. Click here for more detailed information regarding taxes and charitable contributions, or visit the IRS website http://www.irs.gov/. You can also speak with your ATBS tax professional for more information.

Sources:
http://www.efile.com/tax-deduction/income-deduction/charitable-contributions/
http://www.irs.gov/Charities-&-Non-Profits/Charitable-Organizations/Charitable-Contribution-Deductions
http://www.irs.gov/uac/Eight-Tips-for-Deducting-Charitable-Contributions

Image source:
https://www.flickr.com/photos/jschueller2/

SHARE THIS:

Related information

Tax Moves for Truckers to Make Before Year End

2019 is almost over which means it’s time to make sure you have minimized your tax bill for the year. There are many things you can begin doing now to make filing your tax return as easy as possible and reduce the amount you owe. Let’s take a look at a few of the most important tax moves to make before 2019 comes to an end.

 

Read full story

The Best and Worst States for Outbound Freight

As a truck driver, you want to always be pulling a load. This means that after you deliver a shipment, you want to be loading up a new load that same day and bringing it back home.

Read full story

Truck Accidents: 7 Common Causes and How to Avoid Them

Even though commercial trucks are only involved in 2.4% of all accidents, and only 16% of these accidents are the truck driver’s fault, it’s still important to know the best ways to avoid a truck accident. Because of this, we are giving you seven common causes of truck accidents on the road, and some tips to help you increase your awareness.

Read full story

KEEP YOUR BUSINESS BETWEEN THE LINES WITH USEFUL INFORMATION SENT RIGHT TO YOUR INBOX.

Sign Me Up