How To Get Tax Deductions Through Charitable Giving
How to Get Tax Deductions through Charitable Giving
Did you know that charitable giving could qualify you for tax deductions? The Internal Revenue Service (IRS) allows you to claim a tax deduction if you have donated to a charity in the previous year. In other words, your act of generosity will not only benefit the cause you support but yourself as well!
In case you’re wondering how to get tax deductions through charitable giving, it’s extremely important to remember that you can only claim a tax deduction from a charitable donation if you itemize your deductions properly. To take advantage of this option, the total amount of your itemized deductions must exceed the standard deduction that you receive for your filing status.
What are the Rules of Tax Deductions for Charitable Donations?
When filing for a tax deduction, you would need to fill out the 1040 Form Schedule A, which requires you to include all the itemized deductions you’re eligible to claim. If you’ve donated to a charity, you have to follow the rules that the IRS has imposed concerning tax deductions.
Today, Kids Car Donations shares the 3 most important rules you should know so you won’t have to wonder how to get tax deductions through charitable giving.
1. The charity must qualify.
What this means is that your chosen charity should be an IRS-certified 501(c)3 nonprofit organization. Otherwise, your donation would not be considered tax-deductible. However, you can also donate to other nonprofit organizations such as churches or other religious groups that aren’t required to get a 501(c)3 certification since they are already considered as qualified charities.
2. A donation should either be cash or in-kind.
The tax-deductible donations accepted by the IRS include cash or in-kind donations (property or equipment). You can also deduct mileage or other travel expenses that were incurred when you volunteered your time to charity.
3. You must have the right documents.
The IRS will only approve your tax deduction claims if you can present the right documents to support them. For instance, you will have to show to the IRS the tax-deductible receipt that your charity of choice released to you as proof that you made a charitable contribution.
In most cases, the IRS will also require you to submit your chosen charity’s written acknowledgment of your donation. Make sure that the documents you’ll present contain the name of the charity as well as the amount or cash value of your charitable donation.
To have a better understanding of how tax deductions from charitable donations work, you can always contact the IRS for more information. It also helps to seek official advice since there might be some additional documents you need to submit before you can claim your tax deduction.
Tax-Deductible Vehicle Donations
If you have a clunker you want to get rid of quickly, you can always turn to us at Kids Car Donations. When you donate to us a vehicle you no longer need or use, we’ll sell it via auction and use the proceeds to support the programs and services of our IRS-certified 501(c)3 nonprofit partners that are dedicated to providing medical assistance to seriously ill children and teens of needy families.
We’ll gladly accept any type of vehicle donation and we’ll even pick up and haul them away for you FREE OF CHARGE! Best of all, your donation will qualify you for a healthy tax write-off in the next tax filing season.
For more information about Kids Car Donations and our car donations program, check out our FAQs page. For inquiries, you may call us at our toll-free 24/7 hotline 866-634-8395 or send us a message online.
You can make your car donation by filling out our secure online donation form or calling us directly. We accept almost all types of vehicles regardless of their age or condition. We also accept vehicle donations anywhere in the United States since we have vehicle donation programs in all 50 states.
Reach Out to Seriously Sick Kids with Your Car Donation
That old car that’s just collecting dust in your garage could serve as a vital tool to save someone’s life. If you want to extend meaningful assistance to children who are battling life-threatening and other serious diseases and illnesses, don’t hesitate to call us at 866-634-8395. We’ll be happy to assist you in your donation process.