1.
If your goal is a
legitimate tax deduction, then you must be giving to a qualified organization.
Also, you cannot deduct contributions made to specific individuals, political
organizations and candidates. See IRS Publication 526, Charitable Contributions,
for rules on what constitutes a qualified organization.
2.
To deduct a charitable
contribution, you must file Form 1040 and itemize deductions on Schedule A.
3.
If you receive a benefit
because of your contribution such as merchandise, tickets to a ball game or
other goods and services, then you can deduct only the amount that exceeds the
fair market value of the benefit received.
4.
Donations of stock or other
non-cash property are usually valued at the fair market value of the property.
Clothing and household items must generally be in good used condition or better
to be deductible. Special rules apply to vehicle donations.
5.
Fair market value is
generally the price at which property would change hands between a willing buyer
and a willing seller, neither having to buy or sell, and both having reasonable
knowledge of all the relevant facts.
6.
Regardless of the amount,
to deduct a contribution of cash, check, or other monetary gift, you must
maintain a bank record, payroll deduction records or a written communication
from the organization containing the name of the organization, the date of the
contribution and amount of the contribution. For text message donations, a
telephone bill will meet the record-keeping requirement if it shows the name of
the receiving organization, the date of the contribution, and the amount given.
7.
To claim a deduction for
contributions of cash or property equaling $250 or more you must have a bank
record, payroll deduction records or a written acknowledgment from the qualified
organization showing the amount of the cash and a description of any property
contributed, and whether the organization provided any goods or services in
exchange for the gift. One document may satisfy both the written communication
requirement for monetary gifts and the written acknowledgement requirement for
all contributions of $250 or more. If your total deduction for all noncash
contributions for the year is over $500, you must complete and attach IRS Form
8283, Noncash Charitable Contributions, to your return.
8.
Taxpayers donating an item
or a group of similar items valued at more than $5,000 must also complete
Section B of Form 8283, which generally requires an appraisal by a qualified
appraiser.
For more information on charitable contributions, refer to Form 8283 and its
instructions, as well as Publication 526, Charitable Contributions. For
information on determining value, refer to Publication 561, Determining the
Value of Donated Property. These forms and publications are available at
http://www.irs.gov or by calling 800-TAX-FORM (800-829-3676).
Links:
-
Search for Charities or download Publication 78, Cumulative
List of Organizations
-
Publication 526, Charitable Contributions (PDF
178K)
-
Publication 561, Determining the Value of Donated Property (PDF
101K)
-
Form 1040, U.S. Individual Income Tax Return (PDF
176K)
-
Schedule A, Itemized Deductions (PDF)
-
Form 8283, Noncash Charitable Contributions (PDF)
-
Instructions for Form 8283, Noncash Charitable Contributions (PDF)
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