Deducting Donations to Charity Can Lower Your Total Tax Liability
By Taxation Solutions, Inc. on 2016-02-03
It's tax season, which means you're likely looking for ways to lower the total amount you owe to the IRS for the previous tax year. Have you kept track of all of the donations you made to charity? The government allows you to deduct donations to charitable institutions including nonprofit religious and educational groups, war veterans' groups, fraternal societies, and certain other institutions. What donations are eligible?
- Monetary contributions to the organization
- Expenses related to volunteer work, such as travel costs
- Items contributed in good condition
Most charitable organizations will send you a letter or give you a receipt for your records, but it's also a good idea to keep track of donations on your end. Make note of the total amount of the donation, or in the case of goods given, the value of the items and how you determined that value. Then, when calculating your income and expenses for the year, factor in the total you've given to charity on the deductions side.
Still have questions? Taxation Solutions, Inc. has the answers you're seeking. We're Indianapolis's best choice for reliable tax help. We have more than 40 years of experience among our team of tax resolution specialists. We'll guide you through tax season with skill and care. Call today!