Tax Tip: Deductions for Giving to Charities
(NEW YORK) — Giving can be good for the soul — and your wallet. There are several ways to write off charitable donations on your tax return.
“Many people can take advantage of that by donating household goods, gently used clothing and things like that,” Kathy Pickering of H&R Block explains.
To seize this opportunity, you should get a receipt for what you donate.
“You need to value the donations appropriately, and if you’re not sure it’s very simple to go out to the Salvation Army and the Goodwill websites and get estimates,” Pickering adds.
Bob Meighan of TurboTax says many people fail to take a big enough deduction for these goods.
“They tend to undervalue these items because they don’t think they’re worth that much, but in the eyes of someone else they can be worth quite a bit of money, and that means you are not getting a true write-off for those items,” he says. “You can get a much larger write-off for those items.”
Whether it’s cash or goods, document any charitable contribution, experts say.
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