Donations and Tax Deductions

Give Back, Get Back. Donating before 31st December means getting more money in your pocket next tax season. Hi! I'm Ashley from TurboTax and if you're Thanksgiving was anything like mine, you're probably just getting out of your turkey coma and counting down the days, your next big celebration. But taking a few minutes, this holiday season to give back is definitely something worth doing. I'm sure it's not surprising to anyone that November and December are the big months for giving back, but the holiday spirit may not be the only reason why. If you donate before December 31st, you can get more money in your pocket next tax season. So if you're thinking about giving back or you already did, there are few things you need to know. First, whether you're donating money to your local church or fire department or giving your old winter coats to the goodwill. If you itemizing on your taxes, your charitable contributions are tax deductible. There is a little bit of fine print though. One, the non-profit organization needs to be on the list of IRS' Approved Charities. If you're not sure of yours is, go to irs.gov and check it out. Second, the IRS is going to require you to have some proof of your donation. So make sure you're keeping track of those cancelled checks and receipts. Last, if you're donating items, remember, you don't get to deduct, the actual amount you paid for the item. You're donating the fair market value. If you don't know what the fair market value is of your item, you can go to itsdeductible.com. It's a free online tool that's going to help you accurately value your donations. And last, remember, if you're donating time and not money, your mileage to and from volunteer work is also deductible. Hope this was helpful and have a great holiday season. At this time of year, most Americans are too busy with the holidays to even think about taxes - but taking action before December 31st may boost their tax refund. Since most tax saving moves must be made before the end of the year, now is the time to take advantage of all of the deductions and credits available. For More Information Please Visit: turbotax.com. 1