Franchising.com:
Each year, millions of Americans overpay their taxes by not claiming the full value of their charitable donations. And with only a few days left in 2008, it is important to complete and document all donations given before Dec. 31.
“Not only does giving feel good, but it can also positively impact one’s tax return,” says Amy McAnarney, executive director of The Tax Institute at H&R Block.
“Provided that taxpayers document their donations and itemize them on their returns.”
When making monetary contributions, remember that a receipt from the charity or a bank record is required to claim a deduction. If the donation is more than $250, the taxpayer must have written acknowledgment from the charity as well. Monetary contributions include amounts donated to a charity in the form of cash, check, credit card or payroll deduction.
Keep in mind, taxpayers can’t deduct the value of time spent on charitable work as a charitable donation but can deduct many out-of-pocket expenses such as supplies, food and mileage. The mileage deduction is 14 cents per mile. Be sure to document your mileage and get acknowledgment from the charity.
For 2008 and 2009, taxpayers who are at least 70 1/2 have the option of transferring up to $100,000 of IRA funds to qualified charities. Although they cannot claim a charitable deduction, the “qualified charitable distribution” is not taxable and meets required minimum distribution needs.