- Charitable contributions -- cash or property -- that you make to qualified organizations during a tax year can be deducted when you file your return. To claim a charitable contribution deduction, however, you will need to itemize your deductions on Schedule A of Form 1040. Unfortunately, if you take the standard deduction, you will not be able to enjoy any tax benefits. If you claim this deduction, you must keep receipts, bank statements, canceled checks or acknowledgments to substantiate that you made a contribution.
- The institutions that are eligible to receive tax-deductible contributions are called qualified organizations. The Internal Revenue Service maintains an up-to-date list of organizations that are considered qualified in Publication 78, which is also a searchable database on the IRS website. To determine whether your church is a qualified organization, you should search your church's name on the website and if it is listed, then your contributions to the church will be tax deductible.
- Generally, charitable contributions are limited to 50 percent of the amount of your adjusted gross income. However, depending on the type of property you donate or the qualified organization to whom you donate, the limit for your charitable contribution deductions may be reduced to 30 percent or 20 percent of your adjusted gross income.
- Depending on the amount of your contributions to your church, you may be able to deduct all of your contributions. Churches are qualified organizations that are afforded the 50 percent limit, which means that a taxpayer can deduct amounts contributed equal to 50 percent of his or her adjusted gross income. The IRS considers church conventions or associations of churches to fall within this category as well.
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