IRS Guidelines for Deducting Gifts to Charity
The holiday season is a popular time for charitable giving, and if you plan to deduct your donations, you must itemize deductions on your tax return.
1. Donate to Qualified Charities
You can only deduct contributions made to IRS-recognized charities, including:
- Churches, synagogues, temples, mosques, and religious organizations.
- Federal, state, and local government entities, if the contribution is solely for public purposes.
Check an organization’s tax-exempt status at www.irs.gov.
2. Keep Records of Cash Donations
Deductible cash donations include:
- Cash, checks, electronic funds transfers, credit card payments, and payroll deductions.
To claim a deduction, you must have documentation, such as:
- Bank records (canceled checks, credit card statements).
- Written acknowledgment from the charity.
- Payroll donation records (pay stubs or W-2 statements).
3. Household Goods Must Be in Good Condition
- Donations of furniture, electronics, appliances, linens must be in good used condition or better.
- If claiming over $500, a qualified appraisal must accompany the tax return.
4. Additional Documentation for Larger Donations
- Donations of $250 or more require written acknowledgment from the charity.
- The acknowledgment must specify what was donated, the date, and whether any goods/services were received in return.
5. Year-End Gifts Count in the Same Year
- Credit card donations charged before year-end count for the current tax year, even if paid later.
- Mailed checks qualify if sent before December 31, regardless of when they are cashed.
6. Special Rules for Vehicle Donations
- If you donate a car, boat, or airplane, special reporting requirements apply.
- If claiming more than $500, you must file an additional IRS form with your tax return.
Final Tip: Keep Organized Records
Store all receipts, appraisals, and confirmations with your tax records to ensure smooth filing.
For additional IRS guidance, visit www.irs.gov.