If you've got a kind heart and deep pockets, we applaud you...and remind you that you can take deductions for your charitable contributions, if you dot your i's and cross your t's for the IRS.
- For non-cash contributions made this year (clothing or household items), keep an itemized list of each donation, including its fair market value, along with a picture and a receipt from the organization to which you donated. Visit this Good Will Industries link for a list of estimated values for commonly donated items: http://www.goodwill.org/wp-content/uploads/2010/12/Donation_Valuation_Guide.pdf.
- For monetary contributions, save your cancelled checks or credit card statements, plus obtain a written record from the non-profit organizations. Know that they must be IRS-recognized 501(c)3 non-profits in order to claim your donations in your itemized deductions on your tax return.
- Mileage to and from medical-related appointments, as well as mileage logged going to and from your volunteer commitments, can be deductible...and can add up to a nice write off if you document properly.
Not sure if you've got the right stuff written down? No problem. Janet and Susan at Advantage 3 can help you navigate these and other tricky tax laws. For more information, visit them at www.advantage3.net or make an appointment for a free consultation at 708-478-8000.