Donating to charity is one of the best ways to support a favorite cause, but the funds you give may also be deductible, potentially reducing your tax bill by hundreds or thousands of dollars. However, there are certain qualifications that have to be met and recent changes to the tax code could make the charitable donation deduction less attractive to millions of taxpayers. Below are a few points to keep in mind before beginning your tax return preparation.

A Guide to Charitable Donation Deductions

You Must Itemize Your Deductions

The charitable donation deduction is only available to taxpayers who itemize, which may not be the best course of action. For 2019, the standard deduction is $12,200 for individuals, $18,350 for heads of households, and $24,400 for married couples filing joint returns. If your deductible expenses don’t exceed those amounts, taking the standard deduction will have a more dramatic impact on your tax bill.

Only Certain Charities Qualify

Donations to some nonprofits and charities are ineligible for the deduction, so check with the IRS before starting your tax return preparation. Most churches, schools, and hospitals qualify, but if you’re unsure, have your tax professional check their status.

Submit Appropriate Documentation

Every donation you claim must be backed up by receipts or other documentation showing your name, the name of the charity, and the value of your gift. If you donated furniture, jewelry, or other assets over $5,000 in value, the IRS will also want to see an independent appraisal of the property.

Tax return preparation can be stressful and confusing, especially if you’re itemizing your deductions. For over 40 years, Young Hoy & Burnett CPA in Texarkana has helped taxpayers throughout the Four States area navigate the complexities of the code, helping maximize their deductions and lower their obligation as much as possible. Visit their website for more on their services, follow their Facebook for tax tips and advice, or call (903) 794-2211 to make your initial appointment.