How to Deduct Charitable Contributions

Series Summary

IRS! Most people see those three letters and immediately go into panic mode. Everything about income taxes seems to be a hassle. People that don't know what they are doing may find themselves in a world of trouble. However, how do they learn what tax deductions they are eligible for? What do they do if they get a letter from the IRS? Are they going to have to file a tax extension? Do they have to pay tax penalties? There are so many unanswered questions that loom in the gray world of the Internal Revenue Service. If people are worried about tax deductions Danielle Loughran describes the process in detail, and gives them tips for avoiding audits and making smart and safe deductions when filing taxes. So, don't let April 15th catch you off guard. In this series of tax filing videos, and experienced accountant explains several ways to avoid a tax audit. Learn what the IRS looks for when deciding who to audit. Find out tips for reporting rental income and various other deductions. Should one expect an audit if a company they hold shares in gets audited? Watch this series and find out how to claim gambling winnings and how to deduct donations as a write off on a tax return.

Video Transcript

"Have you ever been looking through those charitable receipts and wondering which one of these is tax deductible? Well I'm here to talk to you about how to deduct charitable contributions. Hello my name's Danielle Loughran and I'm a CPA with Excel. One thing I learned is that my little brother is not a charitable deduction even though he takes lots and lots of money from me. So who might be a qualifying organization? Churches and other religious organizations. Tax exempt educational organizations. Tax exempt hospitals. Medical research facilities and there's a whole host of publicly supported organizations that might qualify. The best thing to do is before you make a donation go ahead and ask that organization if they're tax exempt. If they're not sure or you're questioning their answer, there's also a helpful website that I often use. It's www.charitynavigator.org. If you're unsure you can always keep the receipt and consult your CPA. Technically you should have a receipt for all charitable donations however anything over 500 dollars must have a receipt. My names Danielle with Excel and I hope that I've helped you learn how to do a charitable donation."