Charitable donations are tax deductible, but there are certain rules and limitations to consider. Here are some key points to keep in mind:
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Generally, you can only deduct charitable contributions if you itemize deductions on Schedule A (Form 1040), Itemized Deductions.
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The exact percentage of your adjusted gross income that you can deduct for charitable donations depends on the type of contribution and the organization. In general, you can deduct up to 60% of your adjusted gross income via charitable donations, but you may be limited to 20%, 30% or 50% .
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Contributions of $250 or more to any single charity require written acknowledgment of the contribution by the charity before claiming a charitable deduction.
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Gifts to a non-qualified charity or nonprofit are not deductible. To qualify, a group must register with the IRS under section 501(c)(3) or, in some cases, section 501(c)(4) .
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Cash donations without a receipt cannot be deducted. Cash donations greater than $250 must also be documented with a letter from the organization. Non-cash donations also need supporting records.
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Your monetary donations and donations of clothing and household goods that are in “good” condition or better are entitled to a tax deduction, according to Federal law.
Its important to keep records of all charitable donations and to consult with a tax professional or read up on the rules before filing your tax return.
