Tax Deductions and Credits Holiday Donations and Tax Savings Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by Jim Wang Published Nov 27, 2023 - [Updated Dec 19, 2023] 4 min read Reviewed by Lisa Greene-Lewis, CPA and tax expert for TurboTax Tax Deductions and Credits Holiday Donations and Tax Savings Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by Jim Wang Published Dec 19, 2023 4 min read Reviewed by Lisa Greene-Lewis, CPA and tax expert for TurboTax Every year around this time, we start thinking about what we plan to do in terms of charitable contributions. For most, there are a few organizations we like to support with cash, and a few we like to support with time. Regardless of how you decide to give, it’s important to keep your taxes in mind so you can save as much as possible when you go to file your return. If the government is willing to give you a tax break as you’re helping others, it makes sense to take advantage of it, right? Here are a few ways to help make sure you’re getting all of the deductions you deserve this year. Table of Contents Save Your ReceiptsDonate GoodsTrack Your Mileage Save Your Receipts If you make a donation and want a tax deduction, you are required to retain a record of that donation. It’s important to realize that acceptable records are those that are “official.” This means a bank record (such as a canceled check or the charity’s name for a debit or credit donation on the bank statement) or a receipt from the charity itself. Bottom line: if you want the tax deduction from your donation, you need an actual receipt or bank record. Donate Goods You can also donate goods around the holidays. Donations to thrift stores and to charities that qualify as tax-exempt can be a great source of tax deductions. If you have your kids donate some of their toys just before the holidays, you can deduct the fair market value on your taxes if you can claim itemized deductions like home mortgage interest and property taxes. Be aware that for donations over a certain amount, you might need to attach extra paperwork, including sharing the amount you originally paid for the items. When donating to charitable organizations, you can deduct a gift of $250 or more only if you have a statement from the charitable organization showing the amount of money contributed and whether the organization did or did not give you any goods or services in return for your contribution. Understand that you don’t receive a tax deduction for the amount you paid for goods; you only receive a deduction for the current market value as long as the items are in good, usable condition. TurboTax ItsDeductible can help you track and value your charitable donations throughout the year, and then you can transfer your contributions to your tax return at tax time. When you donate the goods, don’t forget to ask for a receipt. Even when donating goods, you need a receipt from the charitable organization. Track Your Mileage If you volunteer your services for a charity this holiday season, you might be able to track the mileage driven in your efforts to help. You can’t receive a deduction for the value of the time you spend working for the charity, but you can get a deduction for the miles you drive. The mileage rate for charity-related driving is $0.14 cents per mile. If you are driving your car in an effort to benefit a charity, make sure that you keep track of the mileage and then deduct it later. This can be one way to reduce the taxes you owe while doing good. Holiday donations can be a great way to help those in need this time of year, and you can also get a tax benefit. You might as well get a financial benefit, even as you help others.Finally, it’s important to note that you can only claim charitable contributions if you claim itemized deductions. If you usually get the standard tax deduction, you may be able to increase your tax deductions by donating so you can itemize and get the larger tax deduction. However, you don’t need to know the difference between standard tax deductions and itemized tax deductions. Meet with a TurboTax Full Service expert who can prepare, sign and file your taxes, so you can be 100% confident your taxes are done right. Start TurboTax Live Full Service today, in English or Spanish, and get your taxes done and off your mind. Get started now Every year around this time, we start thinking about what we plan to do in terms of charitable contributions. For most, there are a few organizations we like to support with cash, and a few we like to support with time. Regardless of how you decide to give, it’s important to keep your taxes in mind so you can save as much as possible when you go to file your return. If the government is willing to give you a tax break as you’re helping others, it makes sense to take advantage of it, right? Here are a few ways to help make sure you’re getting all of the deductions you deserve this year. Table of Contents Save Your ReceiptsDonate GoodsTrack Your Mileage Save Your Receipts If you make a donation and want a tax deduction, you are required to retain a record of that donation. It’s important to realize that acceptable records are those that are “official.” This means a bank record (such as a canceled check or the charity’s name for a debit or credit donation on the bank statement) or a receipt from the charity itself. Bottom line: if you want the tax deduction from your donation, you need an actual receipt or bank record. Donate Goods You can also donate goods around the holidays. Donations to thrift stores and to charities that qualify as tax-exempt can be a great source of tax deductions. If you have your kids donate some of their toys just before the holidays, you can deduct the fair market value on your taxes if you can claim itemized deductions like home mortgage interest and property taxes. Be aware that for donations over a certain amount, you might need to attach extra paperwork, including sharing the amount you originally paid for the items. When donating to charitable organizations, you can deduct a gift of $250 or more only if you have a statement from the charitable organization showing the amount of money contributed and whether the organization did or did not give you any goods or services in return for your contribution. Understand that you don’t receive a tax deduction for the amount you paid for goods; you only receive a deduction for the current market value as long as the items are in good, usable condition. TurboTax ItsDeductible can help you track and value your charitable donations throughout the year, and then you can transfer your contributions to your tax return at tax time. When you donate the goods, don’t forget to ask for a receipt. Even when donating goods, you need a receipt from the charitable organization. Track Your Mileage If you volunteer your services for a charity this holiday season, you might be able to track the mileage driven in your efforts to help. You can’t receive a deduction for the value of the time you spend working for the charity, but you can get a deduction for the miles you drive. The mileage rate for charity-related driving is $0.14 cents per mile. If you are driving your car in an effort to benefit a charity, make sure that you keep track of the mileage and then deduct it later. This can be one way to reduce the taxes you owe while doing good. Holiday donations can be a great way to help those in need this time of year, and you can also get a tax benefit. You might as well get a financial benefit, even as you help others.Finally, it’s important to note that you can only claim charitable contributions if you claim itemized deductions. If you usually get the standard tax deduction, you may be able to increase your tax deductions by donating so you can itemize and get the larger tax deduction. However, you don’t need to know the difference between standard tax deductions and itemized tax deductions. Meet with a TurboTax Full Service expert who can prepare, sign and file your taxes, so you can be 100% confident your taxes are done right. Start TurboTax Live Full Service today, in English or Spanish, and get your taxes done and off your mind. Get started now Every year around this time, we start thinking about what we plan to do in terms of charitable contributions. For most, there are a few organizations we like to support with cash, and a few we like to support with time. Regardless of how you decide to give, it’s important to keep your taxes in mind so you can save as much as possible when you go to file your return. If the government is willing to give you a tax break as you’re helping others, it makes sense to take advantage of it, right? Here are a few ways to help make sure you’re getting all of the deductions you deserve this year. Table of Contents Save Your ReceiptsDonate GoodsTrack Your Mileage Save Your Receipts If you make a donation and want a tax deduction, you are required to retain a record of that donation. It’s important to realize that acceptable records are those that are “official.” This means a bank record (such as a canceled check or the charity’s name for a debit or credit donation on the bank statement) or a receipt from the charity itself. Bottom line: if you want the tax deduction from your donation, you need an actual receipt or bank record. Donate Goods You can also donate goods around the holidays. Donations to thrift stores and to charities that qualify as tax-exempt can be a great source of tax deductions. If you have your kids donate some of their toys just before the holidays, you can deduct the fair market value on your taxes if you can claim itemized deductions like home mortgage interest and property taxes. Be aware that for donations over a certain amount, you might need to attach extra paperwork, including sharing the amount you originally paid for the items. When donating to charitable organizations, you can deduct a gift of $250 or more only if you have a statement from the charitable organization showing the amount of money contributed and whether the organization did or did not give you any goods or services in return for your contribution. Understand that you don’t receive a tax deduction for the amount you paid for goods; you only receive a deduction for the current market value as long as the items are in good, usable condition. TurboTax ItsDeductible can help you track and value your charitable donations throughout the year, and then you can transfer your contributions to your tax return at tax time. When you donate the goods, don’t forget to ask for a receipt. Even when donating goods, you need a receipt from the charitable organization. Track Your Mileage If you volunteer your services for a charity this holiday season, you might be able to track the mileage driven in your efforts to help. You can’t receive a deduction for the value of the time you spend working for the charity, but you can get a deduction for the miles you drive. The mileage rate for charity-related driving is $0.14 cents per mile. If you are driving your car in an effort to benefit a charity, make sure that you keep track of the mileage and then deduct it later. This can be one way to reduce the taxes you owe while doing good. Holiday donations can be a great way to help those in need this time of year, and you can also get a tax benefit. You might as well get a financial benefit, even as you help others.Finally, it’s important to note that you can only claim charitable contributions if you claim itemized deductions. If you usually get the standard tax deduction, you may be able to increase your tax deductions by donating so you can itemize and get the larger tax deduction. However, you don’t need to know the difference between standard tax deductions and itemized tax deductions. Meet with a TurboTax Full Service expert who can prepare, sign and file your taxes, so you can be 100% confident your taxes are done right. Start TurboTax Live Full Service today, in English or Spanish, and get your taxes done and off your mind. Get started now Every year around this time, we start thinking about what we plan to do in terms of charitable contributions. For most, there are a few organizations we like to support with cash, and a few we like to support with time. Regardless of how you decide to give, it’s important to keep your taxes in mind so you can save as much as possible when you go to file your return. If the government is willing to give you a tax break as you’re helping others, it makes sense to take advantage of it, right? Here are a few ways to help make sure you’re getting all of the deductions you deserve this year. Table of Contents Save Your ReceiptsDonate GoodsTrack Your Mileage Save Your Receipts If you make a donation and want a tax deduction, you are required to retain a record of that donation. It’s important to realize that acceptable records are those that are “official.” This means a bank record (such as a canceled check or the charity’s name for a debit or credit donation on the bank statement) or a receipt from the charity itself. Bottom line: if you want the tax deduction from your donation, you need an actual receipt or bank record. Donate Goods You can also donate goods around the holidays. Donations to thrift stores and to charities that qualify as tax-exempt can be a great source of tax deductions. If you have your kids donate some of their toys just before the holidays, you can deduct the fair market value on your taxes if you can claim itemized deductions like home mortgage interest and property taxes. Be aware that for donations over a certain amount, you might need to attach extra paperwork, including sharing the amount you originally paid for the items. When donating to charitable organizations, you can deduct a gift of $250 or more only if you have a statement from the charitable organization showing the amount of money contributed and whether the organization did or did not give you any goods or services in return for your contribution. Understand that you don’t receive a tax deduction for the amount you paid for goods; you only receive a deduction for the current market value as long as the items are in good, usable condition. TurboTax ItsDeductible can help you track and value your charitable donations throughout the year, and then you can transfer your contributions to your tax return at tax time. When you donate the goods, don’t forget to ask for a receipt. Even when donating goods, you need a receipt from the charitable organization. Track Your Mileage If you volunteer your services for a charity this holiday season, you might be able to track the mileage driven in your efforts to help. You can’t receive a deduction for the value of the time you spend working for the charity, but you can get a deduction for the miles you drive. The mileage rate for charity-related driving is $0.14 cents per mile. If you are driving your car in an effort to benefit a charity, make sure that you keep track of the mileage and then deduct it later. This can be one way to reduce the taxes you owe while doing good. Holiday donations can be a great way to help those in need this time of year, and you can also get a tax benefit. You might as well get a financial benefit, even as you help others.Finally, it’s important to note that you can only claim charitable contributions if you claim itemized deductions. If you usually get the standard tax deduction, you may be able to increase your tax deductions by donating so you can itemize and get the larger tax deduction. However, you don’t need to know the difference between standard tax deductions and itemized tax deductions. Meet with a TurboTax Full Service expert who can prepare, sign and file your taxes, so you can be 100% confident your taxes are done right. Start TurboTax Live Full Service today, in English or Spanish, and get your taxes done and off your mind. Get started now Previous Post Top Job Seeker Tax Deductions Next Post 5 End of the Year Tax Tips for Newly Married… Written by Jim Wang More from Jim Wang 72 responses to “Holiday Donations and Tax Savings” Newer Comments » are contributions to animal rescues considered a charitable donation? You can deduct state income tax or sales tax but you can not do both. If you decide to take sales tax you can use the IRS calculator or the actual amount you paid. If you use the IRS formula which is based on all your income including tax free income you don’t need proof of sales tax paid. OR you can use the actual sales tax paid but you should have receipts or other documentation. If they are non-profit tax exempt 501(c)(3) you can. The ones I donate to with that status always provide me with a record of giving in January. Yes any charitable donation you make. In Michigan, our Governor eliminated deductions for charitable contributions along with eliminating other long-standing deductions. This has inflicted some hardship on non-profit charitable organizations. My wife & I are getting divorced, but in our divorce decree its states that I will be entitled to all monies paid into IRS as estimated payments, so we will be filing separately what are we to do? Allan Szamrej Is there a limit on contributions? I thought one could donate without a receipt for some amount under a certain limit. It sounds like receipts are needed for all contributions. Henry, Receipts are required for all contributions. Mary Ellen I’m now disabled and received a back Social Security check…Is this taxable… Gloria, All the rules for determining whether Social Security is taxable will apply. If your income including 50% of your total Social Security exceeds $25,000 if you are single, or $32,000 if married, then you may have to pay taxes on some of the social security you received. Mary Ellen Can u get a tax credit for monetary Church donations? Yunick, You can only take a deduction for donations for which you have a receipt. Mary Ellen If you place used clothing in a local drop box, how can you get a receipt? I have dropped several boxes of used clothing at the Goodwill drop-off location. How can I get a receipt to claim that. Great question , seems the box owner NOT THE LOCATION OF THE BOX’s owner is actually often times paying the owner of the location a cut of his action . Many seem to be for profit / up cycle operations simply reselling the boxes’ content – what is going on ? Shouldn’t churches be allowed to issue receipts for donated things as for example is done at Salvation Army? SA gets lots but not all of mine. Maybe they should get all of it. Thank you for the insight. I have been taking cloths to the Goodwill and Salvation Army throught out the 2013 year. Usually I pay about $1800.00 or more each year in taxes. I do this because I need the tax money through out the year. I would like to wean myself off doing this,..but I’m not sure how to do this? Would you have any informaton regarding how many to claim and still get some money back from the fed government, or just break even. Last year I could not deduct all the clothes that I gave to Charity. I tried to get help from the web site but I could not. So I let it go. I am not sure if I am going to use you this year, I do not need the deluxe form only the simple one and I keep getting charged for the deluxe version. Why is so hard to communicate with Turbo Tax? Also what is the limit for medical, I could not find that one out either? Hi Janet, I’m sorry you had difficulty when you entered your donations. I encourage you to use TurboTax again and contact a tax expert if you have a tax questions or customer support. Regarding medical expenses, you can deduct your expenses if they exceed 10% of your adjusted gross income(7.5% if you are over 65). So if your adjusted gross income is $50,000, then your expenses have to be more than $5,000. Thank you, Lisa Greene-Lewis What would the process be for donating a house? Is the tax amount deductible equal to the property taxes? Hi Lisa, How much % of income have to be in donation to at least break in even if not get some money back? Thank you, Why did you not tell the young lady why it is so hard to get Turbo Tax on the phone? And, there is no limit to medical expenses that you can document, only a minimum before they can be deducted. Also, WHERE IS the 2013 TurboTax software? Hi John, I’m not sure what problems she had getting someone on the phone, but our agents are here year round. If she called during peak season there may have been a lot of people calling our agents. Regarding medical expenses, you are correct that there is no limit to medical expenses, but there is a minimum that can be deducted which are the expenses over 10% of your adjusted gross income(7.5% for 65 and over). TurboTax 2013 for desk top is released. TurboTax online will be available early December. Thank you, Lisa Greene-Lewis Claim 1 but if you are married make sure your spouse is not claiming too many deductions. If you want to wean your self off of the extra cash from the taxes try to do the Dave Ramsey Financial Peace program It actually works and is simple with no investing needed. Not sure if this reply was for me. I was asking about the form and how to claim my clothes that I donate. I asked for help when doing my taxes and I got none. Molto buono. Addesso io vado a mangiare una FICA. Newer Comments » Browse Related Articles Tax Deductions and Credits Save with a New Tax Relief Donation Law and Holiday Giving Tax Deductions and Credits Holiday Gift Giving and Tax Deductions Tax Tips How to Donate Your Time, Property, and Cash Tax Deductions and Credits Are Political Donations Tax Deductible? 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You can deduct state income tax or sales tax but you can not do both. If you decide to take sales tax you can use the IRS calculator or the actual amount you paid. If you use the IRS formula which is based on all your income including tax free income you don’t need proof of sales tax paid. OR you can use the actual sales tax paid but you should have receipts or other documentation.
If they are non-profit tax exempt 501(c)(3) you can. The ones I donate to with that status always provide me with a record of giving in January.
In Michigan, our Governor eliminated deductions for charitable contributions along with eliminating other long-standing deductions. This has inflicted some hardship on non-profit charitable organizations.
My wife & I are getting divorced, but in our divorce decree its states that I will be entitled to all monies paid into IRS as estimated payments, so we will be filing separately what are we to do? Allan Szamrej
Is there a limit on contributions? I thought one could donate without a receipt for some amount under a certain limit. It sounds like receipts are needed for all contributions.
Gloria, All the rules for determining whether Social Security is taxable will apply. If your income including 50% of your total Social Security exceeds $25,000 if you are single, or $32,000 if married, then you may have to pay taxes on some of the social security you received. Mary Ellen
I have dropped several boxes of used clothing at the Goodwill drop-off location. How can I get a receipt to claim that.
Great question , seems the box owner NOT THE LOCATION OF THE BOX’s owner is actually often times paying the owner of the location a cut of his action . Many seem to be for profit / up cycle operations simply reselling the boxes’ content – what is going on ? Shouldn’t churches be allowed to issue receipts for donated things as for example is done at Salvation Army? SA gets lots but not all of mine. Maybe they should get all of it.
Thank you for the insight. I have been taking cloths to the Goodwill and Salvation Army throught out the 2013 year. Usually I pay about $1800.00 or more each year in taxes. I do this because I need the tax money through out the year. I would like to wean myself off doing this,..but I’m not sure how to do this? Would you have any informaton regarding how many to claim and still get some money back from the fed government, or just break even.
Last year I could not deduct all the clothes that I gave to Charity. I tried to get help from the web site but I could not. So I let it go. I am not sure if I am going to use you this year, I do not need the deluxe form only the simple one and I keep getting charged for the deluxe version. Why is so hard to communicate with Turbo Tax? Also what is the limit for medical, I could not find that one out either?
Hi Janet, I’m sorry you had difficulty when you entered your donations. I encourage you to use TurboTax again and contact a tax expert if you have a tax questions or customer support. Regarding medical expenses, you can deduct your expenses if they exceed 10% of your adjusted gross income(7.5% if you are over 65). So if your adjusted gross income is $50,000, then your expenses have to be more than $5,000. Thank you, Lisa Greene-Lewis
What would the process be for donating a house? Is the tax amount deductible equal to the property taxes?
Hi Lisa, How much % of income have to be in donation to at least break in even if not get some money back? Thank you,
Why did you not tell the young lady why it is so hard to get Turbo Tax on the phone? And, there is no limit to medical expenses that you can document, only a minimum before they can be deducted. Also, WHERE IS the 2013 TurboTax software?
Hi John, I’m not sure what problems she had getting someone on the phone, but our agents are here year round. If she called during peak season there may have been a lot of people calling our agents. Regarding medical expenses, you are correct that there is no limit to medical expenses, but there is a minimum that can be deducted which are the expenses over 10% of your adjusted gross income(7.5% for 65 and over). TurboTax 2013 for desk top is released. TurboTax online will be available early December. Thank you, Lisa Greene-Lewis
Claim 1 but if you are married make sure your spouse is not claiming too many deductions. If you want to wean your self off of the extra cash from the taxes try to do the Dave Ramsey Financial Peace program It actually works and is simple with no investing needed.
Not sure if this reply was for me. I was asking about the form and how to claim my clothes that I donate. I asked for help when doing my taxes and I got none.