It’s Christmas, the season of giving, and that means you may be making your yearly donation to your favorite charity. Giving to charity is a great way to give back to your community and a wonderful way to make a difference for organizations you care about. But, did you know that your yearly contribution may actually be cause for a tax deduction come tax season? Here are some rules the IRS has pertaining to charitable contributions.

  • Deductible contributions may only be to qualified organizations. No specific individuals, or political causes.
  • You must file a 1040 form and itemize your deductions on a Schedule A to deduct your contribution.
  • Donations of non-cash property are valued at fair market value. Fair market value is the price that the property would be sold at by two willing parties who understand the value.
  • A record of your contribution must be retained.
  • You need to fill out a IRS Form 8283 if your donation exceeds $500 in non-cash contributions.

For a complete list of rules please see the IRS website. If this seems like a lot of work for you to claim your charitable donation on your taxes, don’t fret. Call GI Tax today. We are experts at this stuff and can take your documents, fill out the correct forms and make sure you get the refund you’re owed. We can’t wait to answer your questions about charitable donations.

From all of us at GI Tax, Merry Christmas!