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Giving to charity can feel good and also reduce your taxes, but the tax rules reward careful planning and good records. These answers cover the questions we hear most often.

Are all donations tax deductible?

No. A gift generally qualifies only if it goes to an eligible organization, usually one recognized by the IRS as tax-exempt. The IRS provides a search tool for checking an organization's status at irs.gov. Gifts to individuals, even those in need, and most gifts to political campaigns are not deductible.

Do I need to itemize to get a benefit?

In most cases, yes. The deduction for charitable gifts is generally claimed on Schedule A, so it only helps if your total itemized deductions exceed your standard deduction. Some years Congress has allowed limited deductions for non-itemizers, so check current rules before you file.

What records do I need for a cash gift?

For any cash gift, you need a bank record or a written acknowledgment from the charity. For larger gifts, the charity must provide a written acknowledgment stating the amount and whether you received anything in return. Get it before you file your return.

Can I deduct donated clothing and household goods?

Generally you may deduct the fair market value of items in good used condition, not what you originally paid. Keep a receipt and list what you gave. Higher-value items and certain types of property require additional forms or an appraisal.

What if I receive something in exchange, like a dinner at a benefit?

Only the portion of your payment that exceeds the value of what you received is deductible. The charity should tell you the value of the goods or services in its acknowledgment.

Can I deduct volunteer time or expenses?

The value of your time is not deductible. Certain out-of-pocket costs directly tied to volunteer work may be, such as supplies or mileage at a rate set by law. Keep records of each expense.

Are there limits on how much I can deduct?

Yes. Deductions are limited to a percentage of your income that depends on the type of gift and the type of charity. Amounts above the limit can often be carried forward to later years. See IRS Publication 526 at irs.gov for the current details.

For a plan that gets the most from your giving, talk with our office before the end of the year.