IRS Special Edition Tax Tip 2014-23, November 17, 2014
(customized to 2015 tax period)
Many people give to charity each year during the holiday season. Remember, if
you want to claim a tax deduction for your gifts, you must itemize your
deductions. There are several tax rules that you should know about before you
give. Here are six tips from the IRS that you should keep in mind:
Qualified charities. You can only deduct
gifts you give to qualified charities. Use the IRS
Select Check tool to see if the group you give to is qualified. Remember
that you can deduct donations you give to churches, synagogues, temples,
mosques and government agencies. This is true even if Select Check does not
list them in its database.
Monetary donations. Gifts of money include those made in cash or
by check, electronic funds transfer, credit card and payroll deduction. You
must have a
bank record or a written statement from the charity to deduct any gift
of money on your tax return. This is true regardless of the amount of the
gift. The statement must show the name of the charity and the date and
amount of the contribution. Bank records include canceled checks, or bank,
credit union and credit card statements. If you give by payroll deductions,
you should retain a pay stub, a Form W-2 wage statement or other document
from your employer. It must show the total amount withheld for charity,
along with the pledge card showing the name of the charity.
Household goods. Household items include furniture, furnishings,
electronics, appliances and linens. If you donate clothing and household
items to charity they generally must be in at least good used condition to
claim a tax deduction. If you claim a deduction of over $500 for an item it
doesn’t have to meet this standard if you include a qualified appraisal of the item with your tax return.
Records required. You must get an
acknowledgment from a charity for each deductible donation (either money
or property) of $250 or more. Additional rules apply to the statement for
gifts of that amount. This statement is in addition to the records required for deducting cash gifts. However, one statement with all of the
required information may meet both requirements.
Year-end gifts. You can deduct contributions in the year you
make them. If you charge your gift to a credit card before the end of the
year it will count for 2015. This is true even if you don’t pay the credit
card bill until 2016. Also, a check will count for 2015 as long as you mail
it in 2015.
Special rules.Special
rules apply if you give a car, boat or airplane to charity. For more
information visit IRS.gov.
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