Tax Tips For Charitable Donations

If you were particularly giving in 2011, you can look forward to a smaller bill come tax time. Read these tips from Kathy Pickering, executive director of The Tax Institute at H&R Block:

• Itemizing Deductions: To deduct a charitable contribution, you must file Form 1040 and itemize deductions on Schedule A.
• Note the Date of the Donation: To be able to deduct contributions on your 2011 return, you must have completed the donation by December 31, 2011. A bank record or receipt is needed for all cash donations of less than $250; cash donations of $250 or more require written confirmation from the charitable organization in addition to the receipt or bank record. Additional substantiation requirements apply to cash donations of over $500 and to all noncash donations. Donations of stock or other non-cash property are usually valued at the fair market value of the property. Clothing and household items must generally be in good condition to be deductible.
• Qualified Nonprofit: To qualify for a tax deduction, you must be giving to a qualified organization. You cannot deduct contributions made to specific individuals, political organizations and candidates.
• Deduct Benefits : If you receive a benefit in return such as tickets to a game or merchandise, then you can deduct only the amount of the donation that exceeds the fair market value of the benefit received.