Charity Tax Tips for the Holiday Season

Did you know that contributing and volunteering to qualified charities can lower your tax bill? With the holidays coming up, and people in the spirit of giving, I thought it would be a great time to list some tax tips for contributing to charities.

1. First, choose a charity that qualifies for tax deductions, such as churches, schools, and hospitals.
2. Remember to note each deduction on the Schedule A of Form 1040.
3. If you donate to a charity and receive something in return, your deduction must be noted as the amount exceeding the fair market value of the gift received.
4. Keep a record of your transactions if you are deducting a contribution of $250 or more.
5. You can decide if you want to donate now or later  based on your tax bracket. For example, if you expect to be in a higher tax bracket next year, deductions are more beneficial to you this year.
6. You don't always have to donate money - time is valuable as well. Volunteers can't deduct the value of their services, but they can deduct the cost of transporting themselves to their volunteer session.

Tis the season for giving!

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