As the end of the year approaches, many people will be wrapping up a season of giving -- in money and household items.
The IRS wants to remind all charitable givers of a few tax-related rules associated with these donations.
Clothing and household items:
-Items must be in good condition or better to be deductible
-Deductions over $500 don't have to meet the condition requirement if you include a qualified appraisal with your tax return
-Items in this category can include clothing, furniture, electronics, appliances and linens.
-Make sure you have a bank record or written communication from the charity showing the charity's name, date of the contribution and the amount.
-Bank records include canceled checks, bank or credit union statements and credit card statements. Make sure these statements include the charity name, date and amount paid and transaction date.
-Monetary donations include cash, check, electronic funds transfer, credit card and payroll deductions. For payroll deductions, retain a pay stub, or a W-2 showing the total amount withheld for charity along with your pledge card showing the name of the charity.
-Make sure the organization you donate to is qualified for a tax deduction by searching here.
-Web Course: Can I Deduct My Charitable Contributions?
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