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It
is only appropriate that you get the full income tax benefit allowed from
any charitable donation that you make.
According to the IRS
bulletin IR-2006-113,
July 18, 2006 “For Tax
Year 2003, individuals reported noncash donations valued at $36.9 billion.
The largest number of donations reported on this form was for clothing,
representing 48.0 percent of all donations.”
When we started using
Intuit TurboTax with ItsDeductable which is a program that helps you
calculate the value of charitable donations that have been made, we found
out that we had been greatly underestimating the fair market value of
thousands of dollars in clothing and other donations we have made over the
years. We have lost out on thousands of dollars in tax benefits. Take
advantage of the program and make sure that you get credit on your income
taxes for all the charitable donations you make. You must keep detailed
receipts of your donations.
Tax laws are complex
and changing. With car donations for example, if the claimed value of the
donated motor vehicle, boat or plane exceeds $500 and the item is sold by
the charitable organization, the taxpayer is limited to the gross proceeds
from the sale. Under new rules, the charitable organization must provide an
acknowledgement to the donor within 30 days of the sale stating the amount
of gross proceeds.
Contact State Charity and IRS Officials When in Doubt
—
Donors with questions about whether a contribution is deductible should call
the IRS at 1-800-829-1040 or for TTY/TDD help, call 1-800-829-4059. They
can also find IRS forms and publications at
IRS.gov.
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