How Do Charitable Donations Impact Your Taxes?

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How Do Charitable Donations Impact Your Taxes?
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• Acts of charity are commendable, and many of us
  love to show our support for our favorite
  charitable organizations, by donating our money,
  items or time to them. But did you know that
  doing so can enable you to claim a deduction on
  your taxes?
• Do a good deed and you could be rewarded, not
  just in knowing that youve done something
  selfless for a charity, but in the form of tax
  deductions, too what could be better?
• To help you get the most out of your charitable
  donations, heres a short guide

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• The tax benefits of donating to charity
• If youre an American taxpayer who supports a
  charitable organization, you can deduct that
  charitable giving from your total taxable income
  and reduce the overall total at tax time.
• Charitable donations can typically only be
  claimed if you itemize your taxes, which the
  majority of Americans will do if the total of all
  itemizations is estimated to be higher than the
  standard deduction. The standard tax deduction in
  Mississippi is 2,300 for single filers and
  married individuals filing separately, 4,600 for
  married individuals filing jointly and 3,400 for
  heads of household.

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• If you donate regularly, or make a large
  contribution, you might be able to benefit from
  itemizing your taxes in order to claim all
  possible deductions.
• How do I deduct charitable giving?
• Begin by establishing whether the organization
  youre supporting with a donation, is a
  registered 501(c)(3) charity, which Goodwill is.
  And if so, youll need to provide detailed
  records of your contributions. The charity you
  donate to, if registered, should be able to
  provide you with documentation that outlines your
  annual contributions.

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• What about donating physical items or goods?
• Just be sure to get a receipt detailing the
  market value of any donations of physical items
  that you give to a charity, and if you donate
  goods that are worth more than 500, you might
  need to have the items appraised, before
  presenting that appraisal to the IRS when you
  file your taxes.
• How much can I deduct?
• In many instances, its possible to deduct most
  of your charitable contributions, but there are
  some exceptions its important to be aware of.
  Firstly, its usually only possible to deduct 60
  of your adjusted gross income, but the amount
  that youre entitled to deduct can vary according
  to the type of organization you donate to.

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• Cash donations that arent accompanied by any
  goods or services in return, are 100 tax
  deductible, but should you receive an item in
  return, youre obliged to subtract the worth of
  the gift from your deductible donation. If you
  choose to donate items such as clothing or used
  goods, you should get a receipt displaying the
  fair market value of the items, and this becomes
  the amount youre permitted to deduct on your
  taxes.
• While you may want to seek advice from a tax
  professional for a more detailed analysis of your
  charitable contributions and how they impact your
  taxes, its important to remember that giving is
  always good, and any money you can save on your
  taxes, is a bonus!

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• Goodwill Industries of South Mississippi is a non
  profit organization with donation centres
  thrift Stores in Gulfport and 9 other cities in
  South Mississippi. We work to enhance the dignity
  and quality of life of individuals and families
  by strengthening communities, eliminating
  barriers to opportunity and helping people in
  need reach their full potential through learning
  and the power of work. Donations are our driving
  force, and without community support, Goodwill
  Industries of South Mississippi would not be able
  to achieve our mission. Visit our Goodwill second
  hand stores in Gulfport or to know more visit or
  website https//www.goodwillsms.org/