eHow Money Tips to Deduct Charitable Donations

We all know it's a good thing to make charitable contributions to good causes. But then what? Many of us have no idea how to deduct these contributions from our taxes.

Charitable Donations

To help you get started on deducting those charitable donations, eHow Money shares tips on record keeping and how to differentiate between monetary and goods contributions.

Monetary Contributions:
  1. Add up all contributions made by check, money order, electronic transfer or credit card to qualified nonprofit and religious organizations.
  2. Include money donations for which you have receipts or adequate records - your sponsorships of jog-a-thons and read-a-thons; your cash contributions to church, synagogue or mosque.
  3. Include the portion of ticket prices for charity-sponsored events that exceeds the value of the goods or services received. For example, if you paid $100 for a dinner and the cost of the dinner was $25, you may deduct $75.
  4. Include your donation to the United Way made by automatic payroll deduction. Your W-2 or year-end pay stub will have the total.
  5. Add up the cost of goods and supplies you purchased for charitable organizations in the course of volunteer work. Disregard any for which you were or could have been reimbursed.
  6. Add up the number of miles driven to, from and during volunteer work. Multiply total mileage by the allowable rate, 14 cents per mile for 1999, and use that amount as a contribution.
  7. Total these figures to obtain the amount to deduct on Schedule A of your tax return on the line, "Gifts by cash or check."
To see more eHow Money deductions tips visit - How to Deduct Charitable Contributions

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