Like the old saying goes "It's better to give than to receive" and I couldn't agree more. Making a charitable donation is not only the right thing to do, but may also save you some money when filing for your income taxes at the end of the year.
A charitable donation is a gift made by an individual or business to a non profit organization, charity or private foundation. This gift is most commonly in the form of cash. Other forms of gifts like furniture, clothing, cars and real estate can also be considered charitable contributions. The IRS has put together quite lengthy forms, rules, regulations, and stipulations on "Charitable Donations." Therefore making it harder and harder to itemize Charitable deductions. Thus contributing more than the standard deduction they give on your taxes almost out of reach. As a result causing discouragement when you claim charitable deductions on your tax form.
Not to worry though you should always feel good just by giving! In conclusion I feel the American government should encourage Americans to do their part in the betterment of humanity. Rewarding those Americans deciding to give to those in need at any donation level and not by putting a limit on what they can afford to give.
If you want something--Give it.
Two things certain in life, death and taxes, so make the best of life. Mentioned above is a quick overview of what charitable donations are and how they could be used to save some money at the end of the year. Here are some rules, regulations, and specifications created by the IRS. These steps must be followed in order to benefit from your charitable contributions. Information needed before you get started:
- You and your spouse's filing status
- Adjusted gross income amount
- Amounts donated and to what organization?
- Noncash contributions, any appraisal or information you have to determine the fair market value of the donation.
- Is the charitable organization Qualify?
For a quick link to all publications on Charitable Contributions curtesy of the IRS Publication 526. Additionally, a quick link to determine the value of your non cash donations Publication 561.
Forms you will need to have properly filled out:
- Form 1040, Schedule A This form will be used for your itemized deductions that will surpass your standard deduction including your cash charitable contributions.
- Form 8283 Will be the form used for any non-cash charitable contributions.