How to Claim Charitable Deductions
Donating to charity can be a wonderful experience, both for the organization to which you've donated as well as for your taxes. The IRS has rules in place regarding what is allowed as a deduction and what is not. As long as you follow those rules, have ample documentation to back up your claims and fill their forms out completely, claiming your charitable donations should be quite simple.
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Things You'll Need
- Receipts or other documentation for all charitable donations
- IRS Publication 561: Determining the Value of Donated Property
- IRS Publication 526: Charitable Contributions
- IRS Form 8283 (optional)
- IRS Form 1040, Schedule A
- IRS Form 1098-C (optional)
Instructions
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Gather your receipts and documentation for all charitable donations you have made during the past tax year.
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Consult IRS Publication 526: Charitable Contributions to find out whether the organizations to which you have donated are qualifying organizations. Only those donations to IRS-approved organizations can be deducted on your taxes.
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Consult IRS Publication 561: Determining the Value of Donated Property to help you properly determine what you should be deducting as regards your donations to qualifying organizations.
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Report your donations on lines 16 through 19 of your IRS form 1040, Schedule A. Cash contributions go on Line 16 and non-cash contributions go on line 17. If your total deduction is over $500 for a given tax year, you will need to fill out Section A of IRS Form 8283 and attach it to your Form 1040 when you submit it to the IRS for review. If your deduction is over $5,000, you will need to complete section B of IRS Form 8283. If you are deducting the value of a donated car or other vehicle, you may need to attach a copy of Form 1098-C or another official document declaring the nature of this donation to your tax return (Form 1040) when you submit it.
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Tips & Warnings
For more intricate situations, such as those that involve high-value real estate, stocks and other situations not explained here, please consult IRS forms 561 and 526 for further information about how these deductions should be reported.
If your fiscal situation permits, you may wish to speak to a licensed professional to get their advice regarding deductions. While you may still prefer to do your taxes yourself, a qualified professional may be able to save you time and find deductions that you may not have been aware of that may also save you money. Check to see that they will stand behind their work should an audit occur before paying them any money.
