Donations and charities are the good things to deal with and this is the reason people tend to donate to the needy but, it also brings a number of economic benefits to the donor, as well. According to the researchers, the happened and charity is positively co-related with each other. For this reason, the donors can be seen really content and happy to deal with the matter of their personal life. Charitable Tax Credit in 2017 – Things to Know
Event small donations can have a huge impact on social welfare and can bring tremendous changes in the society. Apart from a number of social benefits to the donors, the charities bring a lot to them in terms of tax credits and deductibility. For the coming tax season of 2017, here are some things that are necessary for you to know:
No Itemization- No Deduction
The simple rule is that if you are itemizing your tax returns, you are not eligible to get any kind of deductions by the end of the tax year or at the time to tax claim. Mostly people do not itemize their tax returns and thus fail to get any deduction. It is a must for you’re to itemize your tax if you are looking for any charitable gifts to make a prominent difference on your tax returns.
Keeping the Records:
This is probably one of an essential thing to keep with your while making any tax deductible charity. You will need to look into the receiving receipt from the organization you are donating to, you can keep the phone bill for the case where you are dealing with any SMS donations, but this will work only if you have the name of the receiver, the date time and organization and that of the donated amount.
At the same time, if you are about to claim on your donated property or any cash amount, you will need transaction records for you. That might include a bank statement, note from charity, payroll any other official document of the sale purchase and the amount details etc. In any case, the most important thing is the clarity of the record no matter in what shape you are donating to the charity.
Which Donations are Tax-Deductible
Having the accurate answer to this question is the most important thing for you to deal with. If you are really looking for benefits on your tax returns, you need to charity to a qualified organization. Charities to individuals or charities are not eligible for any such claim in any way. Remember a reputed and registered charity organization will always provide you a receipt for the paid amount.
Knowledge of Market Price of Your Gift
If you are donating any property for charity, necessary for your is to know the market price for that property or charity item. On the other hand, if you are about to donate household items, necessary is to make sure that they are in good condition and are useable.
Understanding the Deduction Limits:
There are limits on the charitable deduction that are based on the gross income adjustments and that of the net gross income minus the particular tax deduction. By making a cash donation to any charity you can deduct for about 50% of the gross income. On the other hand with the property donation, you can deduct for up to 30% of the gross income. Though limits are not an issue for the majority of donors but better suggested is to make a clear sketch of your financial situations, personally.
Above all this discussion the core important question is why one should donate to take part in charity. The most common reply to this question is that it will help you make feel good. The one who is donating to helps others is helped by the government in terms of tax returns and other benefits. However, an important point to note here is that the donations will not make the financial condition of a donor better but would only help to have a stability and decrease in the taxes applied. In a nut shell, donations bring a large sum of spiritual, economical and psychological benefits for the donor.