It’s that time of year again: tax season. If you’ve spent the year donating to causes you believe in, you might be wondering how to fill out those forms come April. Keep in mind that not all charitable giving is tax deductible. It’s always smart to consult with a tax professional, especially for items like these. It might be a good idea to add some things to the list, though!
Cash Donations to Registered Charities
This is the most straightforward thing to put on your taxes. It’s easy to get receipts. The amount is generally not in question, since it’s basic money contributions. As long as the charitable organization in question falls into the appropriate category, you can feel good about putting them on your list of deductions (as long as you itemize, of course).
Did you Kon-Mari your house this year? Go a little farther into the Minimalist trend? Those items you dropped off at the Goodwill may be tax deductible. When you donate goods, organizations like Goodwill often ask if you’d like a receipt for the goods. Generally, this is something you fill out yourself, since the work required can get a little tedious. These receipts are good for donations under $250, though that amount may change in the future. For items worth over $250 but less than $5,000, the receipt requirements go up. Donations worth over $5,000 will need an official appraisal. Contact the charity in question, they likely have a standard way of making sure you can put the item on your taxes.
If you gave money to your (or any) church last year and are able to itemize your deductions, you may be able to deduct that from what you owe in taxes.
While donations are down due to the change in tax policies, there are still many people out there who can qualify. Make sure you’re talking with a tax professional to figure out the best way to go about doing it. And remember, tax deductions aren’t the only reason to give back to your community!