Taxpayers who donate to a charity may be able to claim a deduction on their tax return. These deductions basically reduce the amount of their taxable income. Taxpayers can only deduct charitable contributions if they itemize deductions.
Here are some resources for people making donations:
Tax Exempt Organization Search
Taxpayers must give to qualified organizations to deduct their donations on their tax return. They can use this tool to find out if a specific charity qualifies as a charitable organization for income tax purposes.
Publication 526, Charitable
This pub explains how taxpayers claim a deduction for charitable contributions. It goes over:
- How much taxpayers can deduct.
- What records they must keep.
- How to report contributions.
Publication 561, Determining the Value of Donated
Taxpayers generally can deduct the fair market value of property they donate. This publication helps determine the value of donated property.
Form 8283, Noncash
Taxpayers must file form 8283 to report noncash charitable contributions if the amount of this deduction is more than $500. The instructions for this form walk taxpayers through how to complete it.
Schedule A, Itemized Dedications
Taxpayers deducting donations do so on Schedule A. The instructions for this form include line-by-line directions for completing it.
Frequently asked questions: Qualified charitable distributions
Taxpayers age 70 ½ or older can make a qualified charitable distribution from their IRA – up to $100,000 – directly to an eligible charity. It’s generally a nontaxable distribution made by the IRA trustee to a charitable organization. A QCD counts toward their minimum distribution requirement for the year.
Tax Topic 506 – Charitable Contributions
Deducting Charitable Contribution at a Glance