Tax tips for holiday charitable giving
The spirit of giving seems to grow during the holiday season, and many donations are made to charitable causes at this special time of year. The IRS reminds taxpayers to keep some important points in mind when making donations with expectations of deducting them on a federal tax return.
You can deduct donations only if you make them to a qualified organization. Most organizations other than churches and governments must apply to the IRS to become qualified.
“Search for many charitable organizations online at IRS.gov with Publication 78,” said Clay Sanford, an IRS spokesman in Dallas. “Otherwise, most organizations will be able to tell you whether they are tax exempt under the Internal Revenue Code and eligible to accept tax-deductible donations.” Qualified organizations include nonprofit groups that are religious, charitable, educational, scientific, or literary in purpose, or that work to prevent cruelty to children or animals.
Sanford added that it is necessary to file Form 1040 and itemize deductions on Schedule A. Be sure to keep good records, too.
“ There are record keeping requirements for cash contributions regardless of the amount,” Sanford noted. “Remember to keep a written communication from the charity with the name of the charity, date and amount of the contribution or a bank record—canceled checks will work, or bank statements containing the name of the charity, the date and amount.”
More information about charitable donations can be found in IRS Publication 526, available online at IRS.gov, or have it mailed to you by calling 1-800-TAX-FORM.