Tax tips: What to do with charitable donations
PORTLAND, Ore. – At tax time, helping others also can help you. Uncle Sam is cutting you a break even if you donated to certain causes at the last minute.
When millions of Americans saw the images of destruction and despair in Haiti, they responded. And so did the Internal Revenue Service.
If you gave cash to the relief efforts in Haiti this year, you can still deduct that from your 2009 tax return. New this year, however, is that you'll need documentation - whether it's a Haiti donation from 2010 or any charitable gift you made in 2009.
You used to be able to give a few bucks to places like your local church, write it down and claim it on your return. Not anymore.
The IRS and Treasury Department now say that any donation needs to be documented.
When it comes to merchandise you've donated, you'll also need to be as specific as possible. Many tax software programs, such as Turbo Tax, have programs which can help you itemize and estimate the cost of your donation.
However, you'll still need a letter or receipt from the organization verifying you contribution.
The IRS has answers to other frequently asked questions regarding charitable donations online, along with the necessary forms to print out. Here's the link: http://www.irs.gov/faqs/faq/0,,id=199725,00.html.
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