Charitable Contributions: Deductible or Not?
Giving Back is Always in Season
The holidays are a great time to give back, and possibly even receive a tax deduction for your generosity. But do you know what qualifies and what doesn’t?
To qualify for a deduction the contribution must meet the following:
– The contribution must be to a qualified organization (i.e. churches, veteran organizations, certain nonprofits, etc.)
– The contribution must be paid in cash or other property before the close of the tax year
Generally Go Fund Me and contributions to individuals do not qualify.
Generally you may deduct up to 50% of your adjusted gross income, but 20% and 30% limitations do apply.
The most important thing to keep in mind when making your charitable contributions this season is to keep your documentation!