Most taxpayers know that giving to charities and other such organizations can have a benefit when you file your taxes. When filing, you can enter the amount you gave to charity during the previous year, and this can lower the amount that you'll owe on your tax return. However, not every dollar you give will necessarily count as a tax-deductible contribution. There are certain requirements that your contribution must meet in order to qualify.
This article will give you some basic information on what can be claimed as a charitable contribution. If you're unsure whether or not your contributions qualify, then find a Rockford community tax service.
In order to qualify as being tax deductible, your contribution must be made to a certified charity such as the Red Cross, Goodwill, or another charity. Your contribution can also be made to a government body for public spending (such as donations to a public school) or to a religious institution like a church, synagogue, or temple.
Your contributions can take the form of either cash or physical property, such as donating items to your local Goodwill. If you are deducting items as your contribution, you must have a detailed list of items donated, their value, and the date donated. Additionally, if you volunteer for any of the above institutions, you can deduct any out-of-pocket purchases made on behalf of the charity.
What Doesn't Qualify
Giving money to an individual, no matter how much, cannot be counted as a tax-deductible contribution. This includes fundraising websites such as GoFundMe. You also cannot deduct dues or fees paid to HOAs, country clubs, or other organizations run for profit.
Additionally, if you volunteer with any organization (even a certified charity), you cannot itemize your personal time and include that as a tax-deductible contribution.
Remember, this is just a brief introduction to charitable contributions. To get detailed information, find a Rockford community tax service.
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