The holiday season is upon us. With most charities getting 30% of their annual donations in December*, now is the time to donate! But it is also the time for scam charities to arise, so it is important to validate the charity you are donating to is a valid charity. One way to do to do this is by using a tool the IRS has on their site. This tool helps you determine if a charity is real and if the donations you make are tax deductible. Check out this tool today by going to IRS.gov and starting under Charities & Non-Profits. Once you have determined what charity you want to donate to and that they qualify for a tax deduction, here are a few tips for how to take advantage of your maximum tax deduction!
Itemize your deductions
When claiming any donations, you need to determine if it makes more sense to itemize it or to take the standard deduction. If you are unsure what makes more sense for you, just give me a call, I’ll be happy to help!
Have proof of your donations
Whether it is a bank statement, credit card statement, or a receipt, whatever you have to show you made that donation, keep it somewhere safe! You will need it for when you have your taxes done.
Know how much your clothing or household items are worth
If you are donating “gently used” clothing or household items, you may only deduct what they would sell for in a thrift shop. The Salvation Army and Goodwill Industries have lists that will help you determine that, check it out today!
These are just a few things you will need to remember when it comes to donations and taxes! All of us at A Mazzo Accounting Services hope you have a great Thanksgiving and holiday season and we hope you take time to donate to a charity or two this season!
A Mazzo Accounting provides a variety of accounting services to individuals and businesses in the Wyomissing, Reading, West Reading, Sinking Spring and Kenhorst areas as well as towns and villages around the Greater Reading area. Our services for small to mid-size businesses include taxes, payroll, accounting and bookkeeping services. We also provide a variety of services for individuals and they include tax return preparation as well as some accounting assistance. View a complete list of our services today.
*Source: http://www.charitynavigator.org/index.cfm?bay=content.view&cpid=518#.VlM77b_tVuQ