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” « Older Comments Newer Comments » I donated my car to the Susan G Komen Cancer What form do I need to include when filing my taxes? I have a receipt from the organization and I know I also need to submit that but what other form? Can I still use turbo tax? I think so. I donated a car a few years ago and used turbo tax. It don’t care whether it’s a coat or car but you may have to come up with a fair price on your own. edmonds, nada, etc During the last secveral years, I have been owing money. My question is If I donate a $1000.00 Will I get 100% of that credited on my return? My question is If I donate a $1000.00 Will I get 100% of that credited on my return? No. If you take the standard deduction it will do you no good. If you are itemizing deduction use your incremental tax rate to find out how it benefits you. i.e. if the last dollar you earn is taxed at the 20%; the $1000 donation reduces by $200. It depends if you can itemize and even then you only reduce your taxable income by 1000 if you donated 1000. If you’re in a 20% tax bracket it would save you 200 dollars. What do you do if you buy food for the church food drive, or give to a local organizations food drive? I give food to my church pantry. How do I figure that one out? I would like to know when the 2013 discs for Turbotax were sent out since I did not receiv e mine yet. I sometimes help (give money to) a friend who is blind and deaf. I understand that this money is not deductible, but wonder if a tax deductible fund could be set up that I could contribute to that would benefit only him. I was going to donate my late wife’s clothes, but before I could do so I had a flood in my house and the reclamation people threw them out. My insurance would not cover it, but gave me a list of what was thrown out. Can I take a deduction as a casualty? I am the lay minister for our little church. I do not receive a salary for this, but I am essentially full time. We live apx 8 miles from the church. What can I deduct for this job? Office space, mileage, ??? Also put in a geo-thermal heating system and understand that there is a 30% TAX credit for the unit and installation. Does that include Electrical updates to the home to accomodate the installation? You did not give them to charity No charitable deduction. You may qualify for a casualty loss. Why did not the insurance cover the loss?? I am not sure, but I think it was because my wife was deceased and the clothes had no value except to be given away for charity. They did not pay to have the clothes cleaned after the flood and the reclaim people did not store them while the house was being rebuilt. They told me they threw the clothes away. I am heartbroken over this as the clothes could have had further use by someone who desperately needs them. I have purchased several items for a local Girl Scout troop. The items are from a grocery store and a craft store. I just have the receipt from the stores. Can I write these off as a charitable donation? If you give a gift to your children, what is the amount and is it deductible. Do they have to declare? If you give cash gifts to you children.do they have to declare / Hi, Gifts to family and friends are not deductible. Mary Ellen Mary Ellen, I have a questions in regards to cashing in U.S. Savings Bonds to pay for College costs for one of our children. I have been told that any earned interest is not taxed if used for this purpose. I do my own taxes with your company, where would I show the monies earned paid for college tuition? If you wish to deduct something, find the item in an official IRS publication, then either xerox the page or tear it out and put it with your tax return for future use. « Older Comments 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? Rules Around Contributions Tax Deductions and Credits Give the Gift of Charitable Donations on Giving Tuesday Tax Deductions and Credits Donating to Charity & Taxes: An Intro Guide Tax Deductions and Credits How to Track Your Charitable Contributions Tax Deductions and Credits Breast Cancer Awareness Month: Donations and Tax Deductions Tax Reform Can I Get a Tax Break for Supporting My Alma Mater’s Football Team? Tax Deductions and Credits End of Year Tax Tips to Maximize Your Tax Refund
I donated my car to the Susan G Komen Cancer What form do I need to include when filing my taxes? I have a receipt from the organization and I know I also need to submit that but what other form? Can I still use turbo tax?
I think so. I donated a car a few years ago and used turbo tax. It don’t care whether it’s a coat or car but you may have to come up with a fair price on your own. edmonds, nada, etc
During the last secveral years, I have been owing money. My question is If I donate a $1000.00 Will I get 100% of that credited on my return?
My question is If I donate a $1000.00 Will I get 100% of that credited on my return? No. If you take the standard deduction it will do you no good. If you are itemizing deduction use your incremental tax rate to find out how it benefits you. i.e. if the last dollar you earn is taxed at the 20%; the $1000 donation reduces by $200.
It depends if you can itemize and even then you only reduce your taxable income by 1000 if you donated 1000. If you’re in a 20% tax bracket it would save you 200 dollars.
What do you do if you buy food for the church food drive, or give to a local organizations food drive?
I would like to know when the 2013 discs for Turbotax were sent out since I did not receiv e mine yet.
I sometimes help (give money to) a friend who is blind and deaf. I understand that this money is not deductible, but wonder if a tax deductible fund could be set up that I could contribute to that would benefit only him.
I was going to donate my late wife’s clothes, but before I could do so I had a flood in my house and the reclamation people threw them out. My insurance would not cover it, but gave me a list of what was thrown out. Can I take a deduction as a casualty?
I am the lay minister for our little church. I do not receive a salary for this, but I am essentially full time. We live apx 8 miles from the church. What can I deduct for this job? Office space, mileage, ??? Also put in a geo-thermal heating system and understand that there is a 30% TAX credit for the unit and installation. Does that include Electrical updates to the home to accomodate the installation?
You did not give them to charity No charitable deduction. You may qualify for a casualty loss. Why did not the insurance cover the loss??
I am not sure, but I think it was because my wife was deceased and the clothes had no value except to be given away for charity. They did not pay to have the clothes cleaned after the flood and the reclaim people did not store them while the house was being rebuilt. They told me they threw the clothes away. I am heartbroken over this as the clothes could have had further use by someone who desperately needs them.
I have purchased several items for a local Girl Scout troop. The items are from a grocery store and a craft store. I just have the receipt from the stores. Can I write these off as a charitable donation?
If you give a gift to your children, what is the amount and is it deductible. Do they have to declare?
Mary Ellen, I have a questions in regards to cashing in U.S. Savings Bonds to pay for College costs for one of our children. I have been told that any earned interest is not taxed if used for this purpose. I do my own taxes with your company, where would I show the monies earned paid for college tuition?
If you wish to deduct something, find the item in an official IRS publication, then either xerox the page or tear it out and put it with your tax return for future use.