| Most taxpayers do not look forward to filling out their | | | | - If an individual donated item is valued over $500 you |
| taxes each year and filing with the IRS. Some people | | | | must have a third-party appraisal for verification. |
| struggle through their own tax preparation while others | | | | - A gift is deductible for the year in which it was paid. |
| would rather pay someone else to accomplish this | | | | - For the 2009 tax year, certain cash gifts to Haiti relief |
| unwanted task. But one of the things that can make | | | | are tax deductible even though they were made in |
| tax-time more bearable is receiving IRS credit for | | | | 2010. The contributions must have been made after |
| charitable donations that we have made during the | | | | January 11, 2010, and before March 1, 2010, for the relief |
| previous year. So how can giving to others reduce our | | | | of victims in areas affected by the January 12, 2010 |
| taxes? | | | | earthquake. Normal rules apply but if you gave by |
| Charitable Donation Guidelines | | | | phone or text message you only need your phone bill |
| The joy of giving to others is a reward in and of itself | | | | for proof. |
| when we donate to a charity, but it makes it that much | | | | - When figuring the fair market value of a donation |
| more rewarding when the IRS allows us to get a little | | | | make sure that you don't over-estimate the value of |
| credit back for our generosity. Remember these tips: | | | | the gift. A good rule of thumb is to estimate what your |
| - Although not all donations to tax-exempt | | | | item would sell for at a Thrift Store or garage sale. |
| organizations are deductible, generally those given to | | | | - You will only get IRS credit for charitable donations if |
| the following charities are: churches and other religious | | | | you itemize your deductions on your taxes. There is |
| organizations, Community Chests and other publicly | | | | no provision to add these gifts to the standard |
| supported organizations, hospitals, research facilities, | | | | deduction. |
| educational organizations, some membership | | | | Want to Give More? |
| organizations, units of government, and certain private | | | | Since giving to others helps so many people and |
| foundations. | | | | makes us feel like we are making a difference around |
| - Only the portion of your donation that you did not | | | | the world, what could we do to give more? We could |
| receive any goods or services for in return can be | | | | always spend more time helping others or sacrifice |
| deducted. So if you got a T-shirt when you gave, that | | | | some things in our own lives in order to give more |
| value must be subtracted from the total donation for | | | | away to worthy charities. But what if we could have |
| the deduction. | | | | more time freedom to volunteer and more financial |
| - Volunteering your time and knowledge are not | | | | freedom to give to others? |
| deductible, although mileage, lodging, and other costs | | | | Starting an additional income stream in your life can |
| associated with the volunteering may be. | | | | open up numerous possibilities to serve, give, and help |
| - If you are giving cash, make sure that you have a | | | | others. So do your research and find a Plan-B |
| receipt from the charity with relevant details, a | | | | business that will add money to your bottom line and |
| canceled check, or a credit card receipt to prove your | | | | provide the freedom in your life to pursue your |
| donation. | | | | passions. If you don't do it for yourself and your family, |
| - Get and keep an itemized list of all items donated to | | | | do it for those less fortunate that will benefit from your |
| a qualified charity. You must submit the fair market | | | | generosity. |
| value of the items to the IRS. | | | | |