If you make a contribution to a qualified charity organization, you are entitled to a charitable tax deduction under federal law. Let’s address what a charitable tax deduction is, as well as what it isn’t. This will help you weigh your options when it comes to claiming charitable tax deductions on your annual tax return.
What is a charitable tax deduction?
It is an amount that is deducted from your total income for the purpose of claiming lower income on your income tax return, and it can only be obtained if you claim to have donated to a tax-exempt organization for the year in which you are filing. Here is how your charitable contribution can qualify for a tax deduction.
Now, let’s address what a charitable tax deduction isn’t. It isn’t something you are getting a benefit from. For example, if you are driving to church for your weekly worship service, those miles are not a tax deduction. Your attendance in church is not charity work, and therefore your mileage is your own personal expense. However, if you volunteer at your church as an unpaid worker, you may be able to deduct mileage; please ask your tax professional regarding his opinion. In 2013, the IRS allowed a deduction of 14 cents per mile for driving to and from charity volunteer destinations.
You can get a bigger charitable tax deduction by keeping a record of what you have donated, whether it is your money, merchandise or time. Knowing what you have given throughout the year and documenting it is the best way to ensure you claim your charitable tax deductions accurately.
What is a charitable tax deduction?
It is an amount that is deducted from your total income for the purpose of claiming lower income on your income tax return, and it can only be obtained if you claim to have donated to a tax-exempt organization for the year in which you are filing. Here is how your charitable contribution can qualify for a tax deduction.
- If your charitable donation is a monetary gift, it must be in the form of cash or a check.
- If you choose to donate merchandise instead (i.e., personal items or vehicles that can be sold by the organization for profit), then the value of the merchandize you donated will be included in the tax deduction. You must estimate the value of those items.
- If you volunteer for the organization, then you can deduct your mileage driving to and from events where you volunteer; your miles are considered a tax deductible contribution, so keep a record of them in a log book. Please note: To claim a mileage deduction, you should be the driver and not the passenger.
Now, let’s address what a charitable tax deduction isn’t. It isn’t something you are getting a benefit from. For example, if you are driving to church for your weekly worship service, those miles are not a tax deduction. Your attendance in church is not charity work, and therefore your mileage is your own personal expense. However, if you volunteer at your church as an unpaid worker, you may be able to deduct mileage; please ask your tax professional regarding his opinion. In 2013, the IRS allowed a deduction of 14 cents per mile for driving to and from charity volunteer destinations.
You can get a bigger charitable tax deduction by keeping a record of what you have donated, whether it is your money, merchandise or time. Knowing what you have given throughout the year and documenting it is the best way to ensure you claim your charitable tax deductions accurately.