Want more than a warm fuzzy feeling?

Want more than a warm fuzzy feeling?

How about a tax deduction?  Any takers?  Well if you itemize, you may be able to claim your charitable contributions on your tax return.  Here are some things to keep in mind:

Does the organization qualify? – The organization to which you contribute must be a qualified organization.  The IRS offers a tool to search for the organization to see if it qualifies.

Cash contributions – You must have a record of your donation, such as a canceled check or credit card statement.  If you donate cash, you must have a receipt from the charitable organization.

Non-Cash contributions – Generally, you can deduct the fair market value of the property at the time it is donated.  Be sure to document the items donated and the value of those items and obtain a receipt from the charitable organization for your donation.

Did you receive something in return? – If you received something in return for your donation, you can only deduct the amount of your contribution that exceeds the benefit you received.  For example, if you donate $100 to a qualified charitable organization and you receive a ticket to an event that is valued at $50, the maximum contribution you can claim would be $50.

You may not deduct for your time and service.  However, you may be able to deduct mileage if it is directly related to your services for the charity.  For 2016, the standard mileage rate for charitable organizations is $0.14 per mile

Colleen Minnich

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