My elderly neighbor didn't seem to have any family around. I would help her anyway that I could, but there were several things that I was unable to do for her. Her home was not in the best shape and I watched as she struggled to make it up the front stairs to get inside her home. I knew I had to do something more to help her, so I contacted the local humanitarian service. I talked with them about my neighbor and told them about the difficulties she was having. They were wonderful! To find out about what they did to help my sweet elderly neighbor, visit my site.
If you're like most people, you want to help others when you can, especially if it's a worthy cause. However, it can be a hard thing to do if you're counting every penny to make ends meet. Even so, the feeling you get from donating to charities is unlike anything else. Additionally, when you do donate, you can deduct the amount off your income when you file your taxes at the end of the year. If you're considering making one or more tax deductible donations, here is what you need to know about your taxes.
How to Take the Deduction
Keep a record of every donation you make. Most charities offer you some sort of receipt. However, a bank record works as well. Even if you're not donating cash, but donating clothing or other tangible goods, you'll need to keep a receipt of the value of the items in your files.
When filling out your tax form, look for the "Charitable Donations" section. If you're using an online program or computer software program, this section will show up on the screen when it's time to enter it. Add together all your receipts and enter the amount in the appropriate boxes.
Amount You Are Allow to Deduct
According to the Internal Revenue Service (IRS) you can deduct up to 50 percent of your adjusted gross income. This includes money and tangible goods. However, if you donate to any of the following types of organizations, then your limit is 30 percent of your adjusted gross income:
Keep in mind that the donation must be made by December 31st of the year in which you're filing your taxes for.
What to Expect if Donating More Than Allowed
Should you find yourself in a position where you can make many donations, or write one big check to help a charity, any remaining donations over the 30 or 50 percent threshold are carried over to the following year's tax return.
Keep in mind that the limits still apply. But if you don't donate as much the following year, you can claim the leftover portion from the previous year. Keep records of any amounts you're unable to claim so that you can get all the deductions you have coming.
Donating to a worthy cause is a great way to lower your tax liability. Even though you probably don't have taxes in mind when you make the donation, it is a benefit of taking the time to think about and help those less fortunate than yourself. Ask the charity for a receipt of your donation so that you can have a record of it. You'll find that filing your taxes is much easier and faster with the proper documentation.Share