How to Claim Charitable Donations on Your Taxes

Charitable donations can save you money on your taxes, but you must itemize your deductions.

Donating money and property to charity is very rewarding in and of itself, but if you claim your donations at the end of the year, it can also be financially rewarding as well. If you itemize your deductions, you can get a tax break based on the amount of cash and fair market value of property you donate. Proper record keeping is essential if you plan to claim a charitable deduction since the Internal Revenue Service may require documentation to substantiate your deduction.

Things You'll Need

• IRS Schedule A
• IRS Form 1040

Instructions

1. Get receipts for all of your charitable donations. If you donate by cash or check, always ask the charity for a written record of your contribution. If you donate merchandise, ask the charity to provide you with a written estimate showing the fair market value of your contribution. Keep copies of the receipts from all your charitable gifts throughout the year so that you can later reference them when you do your taxes.

2. Download IRS Form 1040 and the Schedule A attachment from the IRS website. Use Schedule A to itemize your deductions. You must itemize your deductions to claim a deduction for your charitable giving during the year.

3. Enter the amounts of your cash and non-cash charitable donations on lines 16 through 19 of Schedule A. This section is titled "Gifts to Charity."

4. Record the rest of your deductions on Schedule A, including deductions for mortgage interest, state and local taxes and property taxes. Add up all the deductions shown on Schedule A and transfer them to your 1040 form. Complete the rest of your 1040 form and file your taxes. Make sure you keep copies of all your receipts in case there is a question about the value of an item you donate to charity.

References

• Internal Revenue Service: Schedule A
• Internal Revenue Service: 10 Tips for Deducting Charitable Donations