Records
Step1
Determine whether your total itemized deductions will come close to or exceed the standard deduction for your filing status.
Step2
Keep ongoing records of cash and noncash charitable contributions made throughout the year if there is a possibility that you can itemize.
Step3
Use canceled checks, receipts or written records for cash or noncash donations of less than $250 in one day. You need an acknowledgement letter from the charity for donations of $250 or more and a written appraisal for noncash donations worth more than $5,000.
Step4
Maintain a log of miles driven for any volunteer actions.
Monetary Contributions
Step1
Add up all contributions made by check, money order, electronic transfer or credit card to qualified nonprofit and religious organizations.
Step2
Include money donations for which you have receipts or adequate records - your sponsorships of jog-a-thons and read-a-thons; your cash contributions to church, synagogue or mosque.
Step3
Include the portion of ticket prices for charity-sponsored events that exceeds the value of the goods or services received. For example, if you paid $100 for a dinner and the cost of the dinner was $25, you may deduct $75.
Step4
Include your donation to the United Way made by automatic payroll deduction. Your W-2 or year-end pay stub will have the total.
Step5
Add up the cost of goods and supplies you purchased for charitable organizations in the course of volunteer work. Disregard any for which you were or could have been reimbursed.
Step6
Add up the number of miles driven to, from and during volunteer work. Multiply total mileage by the allowable rate, 14 cents per mile for 1999, and use that amount as a contribution.
Step7
Total these figures to obtain the amount to deduct on Schedule A of your tax return on the line, "Gifts by cash or check."
Contributions of Goods
Step1
Obtain and save receipts for all donations to charitable organizations of goods you owned.
Step2
Determine the fair market value of the donated property - the amount for which the goods would be resold. For donations to thrift stores, use your estimate of the store's resell price.
Step3
Determine which is lower: your basis - usually the amount you paid when you bought the goods - or their resale value. You will use the lower amount as your charitable tax deduction.
Step4
Fill out IRS Form 8283 if your total contribution of goods is worth $500 or more. Include on the form the names and addresses of the charities; the dates of contribution; the dates of acquisition; your basis - generally, the price you paid for the goods; how you obtained the goods; and the resale value of the goods.
Step5
Add up the allowable deduction for contributions of goods and deduct on Schedule A of your tax return on the line, "Other than by cash or check."