How Much Are You Allowed to Deduct for Charity on Taxes?
- To deduct donations to charity, you must fill out Internal Revenue Service Form 1040 and itemize your deductions on Schedule A. All filers are entitled to the standard deduction, the amount of which varies depending on your filing status. If your itemized deductions don't exceed the standard deduction, it's foolish to itemize.
- Only contributions made to qualified organizations can be deducted when your file your taxes. According to the IRS, this typically includes "religious, charitable, educational, scientific, literary" organizations as well as those for "the prevention of cruelty to children and animals." Find a complete list in IRS Publication 526.
- In 2009, if your adjusted gross income, or AGI, did not exceed $166,800 or $83,400 if using the "married filing separately" status, you could claim all donations to charity as deductible. If you exceeded the allowable AGI, donations to charity and all of your deductions could be limited.
- You may also claim the fair market value of non-cash donations, including property, furniture, clothing and other household items.
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