Are you an individual who regularly donates to charities and charitable organizations? If so, you may be eligible to claim sizeable tax deductions. Here is what you need to know about how much you can deduct, how to claim tax deductible donations, as well as various qualifying criteria to keep in mind.
How much can I deduct?
You will be eligible for a tax deduction if your donation is given to a tax-exempt organization, as defined by section 501(c)(3) of the Internal Revenue Code. In most cases, you will be able to deduct up to 60% of your adjusted gross income via charitable donations. However, this does depend on the type of contribution that you made and the organization that received it.
If you exceed the limit, you will still be able to deduct the excess from tax returns over the next five years via carryover.
How to claim tax deductible donations
The only way is to itemize at tax time. In other words, you will need to fill in Schedule A along with the rest of your tax return. Try to do this ahead of the deadline, as it can prove much more complex than the average tax return.
Is volunteer work tax deductible?
Unfortunately not. However, mileage related to your volunteer work can be – as long as you are volunteering at a qualified organization.
Looking for a company to assist you with your tax deductible donations or your tax filing in general? Get in touch with the Certified Public Accountants at Georgen Scarborough Associates today!