At the end of the calendar year, many taxpayers make last-minute charitable contributions in order to help others AND reduce their taxable income.
For information about charitable contributions, check out this “mini-course” endorsed by the IRS: http://www.stayexempt.irs.gov/Mini-Courses/Can_I_Deduct_My_Charitable_Contributions/can_i_deduct_my_charitable_contributions.aspx. This 20-minute course covers monetary donations as well as the donation of household goods such as clothing or furniture.
Generally speaking, to deduct a charitable donation of money, a taxpayer needs to have a written communication from the charity showing the name of the charity as well as the date and amount of the contribution. A bank record such as a canceled check, bank statement or credit card statement will also suffice if the name of the charity as well as the date and amount paid to the charity is included on the bank or credit car record. It’s also important to verify that the charity is a qualified one.
For more information about charitable donations, either monetary or clothing and household goods, visit the link above or visit the “Charities and Donations” section on the IRS website (www.irs.gov). You may also want to speak with a tax professional.
