What You Need to Know About Deductions for Your Holiday Giving

November kicks off the season of giving, and the donations you make to your favorite charities may also provide you some tax benefits. However, there are some guidelines you should keep in mind as you write those checks.

  • Not all charities are formed alike. Just because an organization calls itself a charity does not mean your donation is deductible. Check out the IRS list of qualified organizations here.
  • There is an income-based cap on the total amount of contributions you can deduct, generally up to 50 percent of your adjusted gross income, but there are 20 percent and 30 percent limitations in some cases.
  • To deduct contributions on your 2017 tax return, you must make the contribution before the close of the 2017 tax year.
  • If you wish to claim a deduction in cash or kind valued at $250 or more, you should retain written records of the contribution from the organization and, if possible, a related personal banking record to support your claim.
  • If you claim over $500 in noncash contributions for the year, you will need to complete an IRS Form 8283 and attach it to your tax return.

Improper itemized deductions are a red flag that can trigger an audit. For more information on taking tax deductions for charitable donations, click here: https://www.irs.gov/newsroom/get-ready-for-taxes-donations-may-cut-tax-bills

No Comments

Leave a comment
Comment Information

Contact the Law Office of Williams & Associates

For more information about our tax law services, or to discuss your tax matter, call our Sacramento office at (916) 488-8501 or toll free at (800) 684-7147. You may also send us an inquiry via email.

Contact the Firm

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Office Location:

3600 American River Drive, Suite 135
Sacramento, CA 95864

Toll Free: 800-684-7147
Phone: 916-488-8501
Fax: 916-488-8196
Sacramento Law Office Map