What You Need to Know About Tax Deductible Donations
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Donations to charity are certainly one of the best ways to reduce your taxable income so that you will owe less in federal income taxes. And by making a donation, you can also help others who are less fortunate, or contribute to a cause that you believe in, like the environment or animal welfare or providing scholarships to gifted children. http://tax-deductible-donations.com
However, there are some very important things you must know before you write your check or make your charitable donation.
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First of all, you cannot take a tax deduction until you actually make your donation. If you just make a pledge or promise to donate, there is nothing for you to deduct until you fulfill that pledge or promise by making your payment or turning over the items you are donating. http://tax-deductible-donations.com
Secondly, you must contribute to an organization that meets the IRS's requirements for a being a qualified tax exempt charity. Always ask the organization that you want to donate to whether they have received a special IRS notice called a 501(c)(3) tax-exempt status. http://tax-deductible-donations.com
When you file your taxes you claim your tax deduction on Form 1040, Schedule A (PDF) so you can only take the charitable tax donation if you fill out Form 1040, not 1040A or 1040EZ. You must also itemize your deductions, so if you always take the standard deduction you won't see any tax benefits. http://tax-deductible-donations.com
Another important point to remember is that you must keep excellent written records of any donations you make to charity if you want to deduct these contributions on your taxes. Always save your canceled checks, any receipts from the charity, and any appraisals for donated property. http://tax-deductible-donations.com
For more information about what you should know before making a tax deductible donation to be sure that you can actually claim your donation on your taxes, please go to http://tax-deductible-donation.com http://tax-deductible-donations.com