If you’re looking to save on your taxes, consider making a charitable donation.
You can get a tax deduction from it.
What types of charitable donations will qualify for the tax deduction?
You can save money by deducting some or all of the charitable contributions you make on your tax return. If you itemize your contributions, you can claim charitable contribution deductions for cash contributions, up to 100% of your adjusted gross income. Read more about it here.
If you intend to make a contribution, you’ll have to follow specific guidelines in order for it to qualify for a tax deduction. In order for your charitable donation to qualify:
- the charity receiving the donation must be a qualified organization under tax law
- contributions must be paid in cash or other property before the close of the tax year
- if you receive a benefit in exchange for the contributions, you can only deduct the amount that exceeds the value of the benefit you received
- must maintain a record of the contribution: bank record or written communication from the qualified organization with the organization name, amount of donation, and date of contribution
When donating cash to a public charity, you can usually deduct up to 60% of your adjusted gross income. If you’ve bee helping the organization for over a year how much you can deduct is different. Appreciated assets and property usually qualify for a 30% deduction of your adjusted gross income.
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