When it is time for your tax return, it is important to find all of your deductions and credits in order to save more money than ever before. There are a lot of these deductions and credits that you can go with, but you need to make sure that you qualify for these or you can prove that you actually should get them.
If you contributed to a charity throughout the year, you could deduct some of this contribution on your tax return. You could deduct things such as money donations, clothing items, and other items that you donate to the right organizations in your area. You will need to keep good record of these contributions in order to be able to add this to your tax return, but it can save a lot of money on your tax bill. If you need to claim a charitable contribution on your tax return, make sure to contact the professionals at James Wells EA MBA Tax Office to get this done.
What is a Charitable Contribution?
A charitable donation is one that you make to an organization that helps out with others in need. You need to make sure that your donation is to a nonprofit organization that is recognized by the federal government. The organization will be able to tell you if they will qualify for this deduction, but if they are not one of the nonprofits, you may have to just donate without the deduction.
There are many items that you are able to donate to charity in order to qualify for this deduction if the organization qualifies. You can donate money as long as you keep the carbon copy of the check or get a receipt to prove how much you donated. You can also donate clothing and other items to the organization. These are a bit harder because you usually have to estimate the value that you donated in the materials, so make sure to at least get a record of what you donated, like the amount of jeans, so you can figure this number out when you are doing your taxes.
Going through and itemizing your charitable donations can take some time and patience. If you don’t have time to get through all this information but you would still like to get the deduction for your donation, make sure to contact the professionals at James Wells EA MBA Tax Office to get this done in no time.
Documents You Need
You do need to take some time to get the right documents in place in order to help prove that you actually did provide this donation to the charity that you state. There are some people who like to try and claim some of these donations even when they don’t help out someone at all. This can get you in a lot of trouble if you are trying to get things that you don’t qualify for on y our tax return. But if you have the right receipt or documents, you will find that it is easy to prove your charitable donation without all the hassle.
In most cases, the more information you have about the transaction, the easier it is to claim this deduction. At a minimum, you need to have something that includes the name of the organization you donated to, the date that you donated the items or money, and the amount. If you wrote a check to the organization, make sure to keep the carbon copy to use as a reminder for the donation and as your proof because this includes all of the information that you need. If you donated clothes or other items to an organization, make sure that you get a receipt from the company, or even a piece of paper with some of the information and a letterhead of the organization, so you are able to prove your donation later on.
Figuring out which documents are needed to take care of your charitable donation can be a challenge. Don’t try to figure this all out on your own. Instead, contact the professionals at James Wells EA MBA Tax Office to help out. Our professionals are going to be able to help out with this and any other tax questions you may have.
Filing on Your Return
If you have all the right paperwork in place and can prove that you did give this donation, you will be able to file it on your tax return. Just put the information in the right spot and then you are set to go. Keep hold of your receipt or other document for at least the next three years in case the IRS asks to see some proof of this donation. This can make things a bit easier on the long run. Consider working with the professionals at James Wells EA MBA Tax Office in order to get this donation filed properly so you can get the right deductions in no time.
Charitable contributions are great ways to help out others in need while also reducing some of the tax bill that you owe on. If you have contributed to a charity in your area, make sure to contact Jim Wells from James Wells EA MBA Tax Office in Santa Cruz, CA to help you file this contribution. Our professionals are well versed in tax law and can help you get your tax return done, no matter what your unique situation is. Contact us to get started today.
James Wells EA MBA Tax Office