When tax time arrives, your generosity might help you lower your tax bill – aka – charity donations.
Whether you give money to a church or clothing to your local Goodwill, if you itemize deductions, you can write off your contributions.
However, just like anything, there are plenty of rules that apply. In order for your donation to be deductible, it must go to any of the following organizations that otherwise are qualified under section 170(c) of the Internal Revenue Code:
- Churches and other religious organizations
- Nonprofit volunteer fire companies
- Tax exempt educational organizations
- Civil defense organizations
- Tax exempt hospitals
- Certain medical research organizations
- Government units
- Publicly supported organizations
- Certain private foundations
- Community chests, corporations, trusts, funds or foundations
- War veteran organizations
- Domestic fraternal societies
- Nonprofit cemeteries
If you are not sure if an organization qualifies, EO Select Check is a great on-line search tool that allows you to search for an exempt organization and check certain information concerning its federal tax status and filings.
Once you have made you contribution, remember that in order to write off any cash contributions, no matter how small, you must show proof of a bank record, canceled check or a receipt.
Bottom line… doing good can also be good for you. William Wolske, CPA wants to be sure you are making good money decisions. Schedule your free consultation today to receive assistance when it comes to handling your finances and money saving goals. Contact our offices at 843.706.9644 . We’ll go through your financial situation together, so you can have a financially happy tax season!