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Get Ready for Taxes: Donations May Cut Tax Bills IRS reminds taxpayers looking to maximize their tax savings before the end of the year to consider charitable giving. Giving money or goods to a tax-exempt charity before Dec. 31 can usually be deducted from that year’s federal income tax return. Taxpayers are urged to consider the following before donating:

 Only Donations to Eligible Organizations are Tax-Deductible – IRS Select Check on IRS.gov is a searchable online tool that lists most eligible charitable organizations. Religious organizations and government agencies are eligible to receive deductible donations, even if they are not listed.  Itemize to Claim Charitable Donations - Charitable deductions are not available to individuals who choose the standard deduction. Only taxpayers who itemize using Form 1040 Schedule A can claim deductions for charitable contributions.  Get Proof of Monetary Donations - A bank record or a written statement from the charity is needed to prove the amount and date of any donation of money.  Donating Property – For donations of clothing and other household items, the deduction amount is normally limited to the item’s fair market value. Clothing and household items must be in good condition to be deductible.  Note Any Benefit in Return - Donors who get something in return for their donation may have to reduce their deduction. Benefits can include merchandise, meals, tickets to an event or other goods and services.  Older IRA Owners Have a Different Way to Give - IRA owners age 70½ or older can transfer up to $100,000 per annum to a qualified charity tax-free. The transfer can count as their required minimum distribution for the year.  Good Records – The kind of records a taxpayer must keep vary according to the amount and type of donation. To claim a deduction, be sure to research and secure the proper receipt needed to substantiate your gift.

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Get Ready for Taxes: Donations May Cut Tax Bills  

IRS reminds taxpayers looking to maximize their tax savings before the end of the year to consider charitable giving. Giving money or goods...

Get Ready for Taxes: Donations May Cut Tax Bills  

IRS reminds taxpayers looking to maximize their tax savings before the end of the year to consider charitable giving. Giving money or goods...

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