While you may be donating to charity because you truly care about a specific cause or population, you may also want to consider the tax benefits of your donation. Monetary and physical gifts to IRS-recognized charities can be deducted from your taxable income, which can, in turn, reduce the total amount you owe.
The government allows deductions for charitable donations to the following types of organizations:
- Churches, synagogues, temples, mosques, and other religious entities
- Nonprofit schools and hospitals
- Nonprofit volunteer fire companies, parks and recreation facilities, and civil defense organizations
- Organizations operated for charitable purposes, e.g. the Red Cross, Salvation Army, Goodwill, and United Way
- War veterans’ organizations
- Federal, state, and local governments
- And several other classes of organization
If you know the organization you’re donating to is a qualified charity, make sure to get a receipt for your donation, so you have documentation during tax season. If you’re uncertain whether your charity of choice counts in the eyes of the IRS, Taxation Solutions, Inc. can help. We provide all sorts of tax help year-round, and we’ll be happy to go over questions related to donations—or any other concerns you have. We’re Mesa’s best source for tax resolution and much more. Contact us now to book your consultation!