Have you contributed to a non-profit organization in the past year? Are you wondering what you can deduct for your donation on your tax return?

There are few things that you need to know to be able to deduct your charitable donations on your return:

 

  • Your contributions of money or property must be made to a qualified organization.
  • You must actually make the donation in the same year that you are taking the deduction.
  • You must itemize your return.
  • Keep record of all of your donations.
  • If your cash donation is $250 or more you must have supporting documents that include: The name of the organization, the date, and the amount.
  • Non-Cash contributions must be assessed a fair market value.
  • If your non-cash contribution totals more than $500 you must file an IRS form 8283.
  • If you donate property worth more than $500 you must have a written appraisal of the Fair Market Value.
  • If you donated a vehicle or boat and it was worth more than $500 you must receive a written acknowledgment from the organization that you donated it to.

There are some limitations to the total amount you may deduct on your taxes. The following percentages are the general rule for the total amount you may deduct. Cash contributions may not total more than 50% of your adjusted gross income. Appreciated property contributions may not total more than 30% of your adjusted gross income.

 

The following items are not tax deductible: 

 

  • Contributions to political parties, campaigns or action commitees
  • Donations given to individual people
  • Donations given to profit- schools or hospitals
  • Fees or fines paid to local or state governments
  • Donations given to foreign governments
  • Donations made to labor unions, chambers of commerce, or other business organizations

For more information on your Charitable Donations, we suggest using turbotax online. Visit Turbotax Online today to calculate your charitable donation tax deduction.