Donated to Charity
Attended Charity Event
received anything in return for your donation you may only deduct the dollar
amount that is more than the fair market value of the benefit you received.
For example, you attend a fundraising dinner for a qualified non-profit
organization and your ticket price is $65. If the regular price of the meal
would have been $10, the amount of your deductible contribution would be
Donated Property to Charity
Extra tax deductions may be as close as your closet. If you donated
clothing, toys, furniture, or other household items to charity, you are allowed
to deduct the fair market value of your donated items. All items donated must
be in good condition or better to be eligible for a tax deduction. The IRS does
not provide fixed formulas for determining the fair market value. The prices
paid for similar items in thrift and consignment shops are good indicators of
fair market value for household goods and clothing.
If you donate a vehicle that has a
fair market value over $500, your deduction depends on what the charity does
with the vehicle. If the charity immediately sells the vehicle, your deduction
may be limited to the gross proceeds from the sale. In addition, substantiation
requirements for donated vehicles are stricter than with other charitable
Donations Must Be to a Qualified Charity
Keep in mind that you can deduct your contributions only
if you make them to a qualified organization. You can ask any organization
whether it is a qualified organization, or you can check online at EO Select Check on IRS.gov. Churches and
governments are usually qualified organizations.
Donations to Individuals not Deductible
Donations to individuals not
deductible Not every donation you make to a worthy cause is deductible as a
charitable contribution. If you gave money to an individual in need, or to an
organization and specified that the contribution was for an individual, you are
not allowed to deduct the amount given. When you donate to non-qualified
organizations such as civic leagues or social clubs, you cannot take a tax
Hosted an Exchange Student
If you have a foreign exchange student living in your home, you may
be able to take up to $50 per month of the related expenses as a charitable
deduction. In order for such expenses to qualify for the deduction, the
following conditions must be met:
- The student lives in your home
under a written agreement between you and a qualified organization as part of a
program to provide educational opportunities to the student.
- The student
must not be a relative
The student must be a full-time student at
the high school level or below.
For more information see
Publication 526 at www.irs.gov.