Charitable donations are a great way to help others and lower your tax bill. That said, the IRS has rules that must be followed to claim a tax deduction for your generosity. You must make your donation to a qualified organization and not to an individual. You must itemize your donated items on Schedule A and provide written receipts when required.
You CANNOT deduct the value of your wages for the hours spent helping out at your favorite nonprofit. Neither can you deduct the value of a project you created, such as a poster that you, as a graphic artist, designed for the charity. But you CAN deduct other costs associated with your charity work.
When you drive your car for charity, remember to deduct 14 cents per mile, plus parking and tolls. If you paid for child care while you were volunteering, this may be deductible. You also may claim a deduction for your out-of-pocket expenses. For example, ingredients for those cakes you prepare for a nonprofit organization's bake sale and stamps you buy for a school's fund-raising mailing count as charitable contributions.
To claim a charitable contribution deduction for gifts of $250 or more in cash or property, you must get a written acknowledgment from the charity. For donations of property, the acknowledgment must include, among other things, a description of the items contributed.
You CANNOT deduct the value of your wages for the hours spent helping out at your favorite nonprofit. Neither can you deduct the value of a project you created, such as a poster that you, as a graphic artist, designed for the charity. But you CAN deduct other costs associated with your charity work.
When you drive your car for charity, remember to deduct 14 cents per mile, plus parking and tolls. If you paid for child care while you were volunteering, this may be deductible. You also may claim a deduction for your out-of-pocket expenses. For example, ingredients for those cakes you prepare for a nonprofit organization's bake sale and stamps you buy for a school's fund-raising mailing count as charitable contributions.
To claim a charitable contribution deduction for gifts of $250 or more in cash or property, you must get a written acknowledgment from the charity. For donations of property, the acknowledgment must include, among other things, a description of the items contributed.
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