Tax Tip: Claiming Charitable Contributions

PHOTO: A donations box with clothing is pictured in this stock image. Getty Images
A donations box with clothing is pictured in this stock image.

Giving can be a rewarding experience. It can also be rewarding for your tax deductions.

"When claiming charitable contributions, if you're itemizing, you can claim up to 50 percent of your income," says Kathy Pickering, executive director of The Tax Institute at H&R Block.

Just make sure you have your paperwork: "For most charitable contributions, you need a receipt,” Internal Revenue Service spokesman Eric Smith notes.

Money is one thing, but there's so much more you can donate. TurboTax Vice President Bob Meighan says you'd be amazed by what write-offs you can find if you just take a look through your house.

"You can deduct clothing, furniture -- whatever it is you give to charities. It's not just cash,” Meighan says.

Donating stock is another good option, because it's assessed at fair market value, as opposed to what it was worth when you purchased it.

Comments