Tax Deductible Donations

It is wise to study which groups are considered legitimate charities as far as being tax deductible. It is also essential that the person donating keep detailed records along with receipts of transaction. All this said, there are numerous possibilities when it comes to tax deductible donations.

One tax deductible donation you might not have thought of is an automobile. Keep in mind that the vehicle must have an intended use in the daily activities of the charitable organization or be given to a needy person. There is a website that you can visit called Charity Cars that will help guide you through the process.

If you are donating below 20 percent of your annual adjusted gross income, you need not concern yourself with limits. When you get into the higher amounts, you need to check with your tax accountant for specifics. As a general rule, you are allowed to donate up to 50 percent of your annual adjusted gross income. Please remember that the deduction must be made on your taxes the same year the donation was made.

Items that you donate to Goodwill or the Salvation Army are tax deductible, but must be documented by a receipt, as a canceled check is not enough. Some of the organizations you can receive a tax deduction for donating are churches and other religious organizations, tax exempt educational programs and hospitals.

Some of the non tax deductible entities are individuals, political parties, chambers of commerce, for profit schools and hospitals. The Charity Navigator website has helpful advice on where and where not to donate when you are looking for a tax deductible donation organization.