The easiest deductible expense may be donations to charities. However, they must be qualified by the IRS. The IRS has provided a web tool to check the validity of your charities’ tax-deductible status. For information on how to save the most in the coming year, discuss your situation with the qualified advisors in our expert tax consulting department.
Perks of Receiving Tax Deduction Through Charitable Contributions
- You can choose the amount you give exactly.
- You choose the timing of payment at your convenience, although more savings can occur with well-timed giving.
- The donations are typically fully deductible.
Remember that the charitable donation is deductible in the year it was made. This means that you want to consider whether it is better to donate in December or January for the best tax results. A check mailed to a charity in late December will count for that year's taxes. The higher your tax bracket the more you stand to gain from generous donations, tax-wise.
It is important to check before making a donation that your chosen charity is actually eligible to receive tax-deductible contributions, in order to enjoy those tax benefits. Checking your chosen organization's tax eligibility is as easy as visiting the IRS website and inputting the information about the charity. The information is updated each month. Even a charity that was qualified before can lose that status, so check each time you give to each charity. Also always remember to get a receipt for your contribution, whether it is monetary or a non-cash item.
Contact our expert tax advisors for advice on how charitable donations can cut your tax bill. We can guide your financial future with up-to-date tax and financial knowledge and expert advice.
Take a moment to verify that your chosen charity is eligible to receive tax-deductible contributions in order to get the most out of your deduction on your taxes.
File Download: The IRS Offers Online Tool to Verify Your Charity’s Eligibility