Charity deductions

According to the IRS, there are five types of organizations that are qualified to receive deductible contributions. The first is a community chest, corporation, fund, or foundation. The second type includes war veterans' organizations; and the third includes domestic fraternal societies. The fourth includes certain nonprofit cemetery companies or corporations; and fifth, a political subdivision of a State or U.S. possession, or an Indian tribal government or any of its subdivisions that perform specific government functions. If you're not sure of the tax status, you can check the government's list of tax-exempt organizations in IRS Publication 78. You can deduct donations to religious, charitable, educational, and other philanthropic (fill-ann-THRAW-pick) organizations that have been approved by the IRS (I-R-S). Donations to federal, state, and local governmental bodies are also deductible. An example of a charitable contribution is if you bought a ticket to a fundraiser sponsored by a charity, your deductible contribution is the difference between what you paid and the regular ticket price. For each contribution of $250 (two hundred fifty dollars) or more, you must obtain a written statement from the charity acknowledging the contribution amount and stating whether or not the charity provided you with goods or services in return for your contribution. If you received goods or services in return for your contribution, the statement must describe and value those goods or services. For contributions less than $250 (two hundred fifty dollars), cancelled checks or credit card receipts are the best evidence. For small cash contributions, written notes are normally sufficient. You can itemize deductions on Schedule A of Form 1040 (10-40). These tips are provided to give you general information about your taxes. If you have specific questions, please consult a tax advisor or call the toll-free number for Federal Tax Information and Assistance at 1-800-829-1040.