YOU Magazine - November 2022 - Tax-Deductible Donations: FAQs
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Tax-Deductible Donations: FAQs

Tax-Deductible Donations: FAQs

When you donate to a charity, not only will you feel good about helping others but you might be able to reduce your tax burden. If you're considering making a tax-deductible donation, make sure you read through this list of commonly asked FAQs so you have all the information.

Question: Can You Deduct Charitable Donations Without Itemizing?

Answer: Typically, you can only claim a charitable donation if you itemize your deductions, but this changed with the passage of the CARES Act. Now, you can deduct up to $300 if filing as an individual or $600 if you're married and filing jointly. This applies to monetary charitable contributions but not goods.

Question: What Do You Need to Write off a Donation?

Answer: To prove how much you contributed, you will need to keep records. However, the type of records you need to keep depends upon the donation. For tax write-offs, keep a bank record for cash donations. This can include a canceled check, credit card statement, or receipt. Generally, keep records of the date of your contribution, the amount, and the name of the organization you donated to.

Question: Can You Receive Tax Donations for Volunteering?

Answer: According to the IRS, you cannot deduct the value of your time or service but you can deduct the expenses related to volunteering for qualified organizations. These expenses must be directly connected to your volunteer work and not for anything personal. The donations can include mileage driven to attend volunteer opportunities, and you can either take the standard mileage deduction or use receipts for gas.

Before you donate to a charity, make sure you do a little research to ensure the organization is trustworthy. Then, determine what you'd like to contribute. Know that certain tax-deductible donations must adhere to specific criteria to bolster your refund. If you have additional questions, make sure you direct your queries to a tax professional.

Sources: Turbotax.intuit.com, Forbes.com, Nerdwallet.com




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