Tax Tip: Hold On to Donation Receipts - East Idaho News
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Tax Tip: Hold On to Donation Receipts

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GETTY 22014 TaxDonations?  SQUARESPACE CACHEVERSION=1392899296844lucky336/Thinkstock(NEW YORK) — Making a donation? You may want to hold on to that receipt.

One of the biggest deductions on many people’s tax return is for charitable contributions. But over the past few years, the Internal Revenue Service has really tightened down on the rules of giving.

Tax accountant Janice Hayman says deduct only what you can prove.

“Now more than ever it is important that you save every copy of every canceled check or the image of the check, credit card receipt and the acknowledgement letter from the charity that you’ve donated to,” she tells ABC News Radio.

And you can only deduct the fair market value of the donated item. Charities like Goodwill have donation value guides on their websites.

If your donation is more than $500, you will have to fill out Form 82-83 and attach it to your return.

Copyright 2014 ABC News Radio

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