Keep Records of Your Charitable Donations

The rules have tightened to claim your tax deductions.

Internal Revenue Service

If you have donated items or money to your favorite charity, you can note them as a deduction on your 2008 tax filing with the Internal Revenue Service. However, you must have the proper records to support the deduction.

If you have donated items or money to your favorite charity, you can note them as a deduction on your 2008 tax filing with the Internal Revenue Service. However, you must have the proper records to support the deduction.

Are you making a cash contribution to your favorite charity this year? Have you recently spent a weekend cleaning stuff out of your garage or basement and then donated the items to a local charity? If so, you need to know about the rules from the Internal Revenue Service (IRS) to claim a tax deduction.

Due to changes in the Pension Protection Act of 2006, the rules on recordkeeping for charitable contributions became a little more strict beginning in January 2007.

To deduct a charitable cash donation, regardless of the amount, you must have a bank record or a written communication from the charity showing the name of the charity and the date and amount of the contribution. Acceptable bank records would include canceled checks or bank or credit union statements containing the name of the charity, the date and the amount of the contribution.

Under the previous rules, records such as personal bank registers, diaries, or notes made around the time of the donation could often be used as evidence of cash donations. Personal records like this are no longer sufficient.

Here are some additional tips to help you deduct your charitable contributions on your 2008 federal tax return.

• Charitable contributions are deductible only if you itemize deductions using IRS Form 1040.
• Contributions must be made to a qualified organization.
• Used clothing and household items such as furniture, linens and appliances must be in good condition.
• Vehicle donations are subject to special rules.
• To deduct charitable contributions of items valued at $250 or more, you must have a written acknowledgment from the qualified organization.
• To claim charitable contributions of items valued at $500 or more, you must complete IRS Form 8283, Noncash Charitable Contributions, and attach the form to your return.

More information is available on the IRS Web Site at IRS.gov. A good resource is IRS Publication 526, Charitable Contributions, found on the Web Site, or by calling 800-TAX-FORM (800-829-3676).

This article, and hundreds more, can be found on the NEA Member Benefits Web Site in the “Member Library” section at www.neamb.com/consumer_articles.jsp