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Tis the season to be giving! Are you planning on donating to your favorite charity this holiday season? Or, maybe you give year round. No matter what - check out these tips on making sure you can deduct your donation!
- Make sure you are donating to a qualified tax-exempt organization - Charities will usually let you know if they have their 501(c)(3) tax-exempt status. But, keep in mind, some non-profits aren't required to have that status. So do your research! Here are some guidelines from the IRS.
- Document everything - Write down who you donated to, how much you donated, and the date you donated. Keep this list with your important papers so you can find it easily when it's tax time.
- Write down what you donate - Other than cash, you can donate things like: food, clothes, furniture, electronics, etc. If you are donating anything like the items listed - write down every item donated, the value, and take a picture. This will help you itemize everything and will help if the IRS has any questions.
Maybe the IRS is kind of nice...giving you tax breaks for your donations and all. Just make sure and follow their rules!
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