It’s almost tax time, which means our experts will be releasing information more frequently in an effort to make tax time easier for you. This time around, we want you to be aware of the potential tax deductions as it relates to charitable contributions.
Taxpayers who donate to charity should check out the resources below to see whether they qualify for a deduction on their tax return.
If you donate to a charity, you may be able to claim a deduction on your tax return. These deductions basically reduce the amount of taxable income. Keep in mind, you can only deduct charitable contributions if you itemize deductions. Although, Minnesota does have a subtraction of 50% of the total amount of contributions over $500.
Here are some resources for people making donations: Tax Exempt Organization Search
Taxpayers must give to qualified organizations to deduct their donations on their tax return. They can use the tool above to find out if a specific charity qualifies as a charitable organization for income tax purposes.
How do you claim a deduction for charitable contributions? Read more here: Publication 526, Charitable Contributions. You will learn:
- How much taxpayers can deduct
- What records you must keep
- How to report contributions
Reach out to your tax professional for eligibility for, and guidance on your charitable contribution deductions.