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Now is the ideal time to review tax benefits for EOY charitable giving

Posted on December 7, 2022

Many people choose to make charitable donations over the holidays. If that charitable spirit relates to your giving habits at the end of the year (EOY), here’s how to make sure your gifts are tax-deductible.

Which charities are contribution-deductible?
Most contributions of cash or property made to a charitable organization are deductible through Schedule A, Form 1040, Itemized Deductions. These include contributions made by check, credit or debit card, as well as unreimbursed out-of-pocket expenses in connection with volunteer services to a qualifying charitable organization. (Donations of property other than cash are generally deductible at their fair market value).

Here are some guides to follow when considering making a charitable gift:

Use the IRS Tax Exempt Organization Search tool
As you decide where to make your donations, ask the IRS (online) for help. Tax Exempt Organization Search on IRS.gov is a tool that provides information about an organization’s federal tax status and filings, including:

  • Confirming an organization is tax-exempt and eligible to receive tax-deductible charitable contributions.
  • Ensuring that an organization has not had its tax-exempt status revoked.
  • TEOS does NOT list certain organizations (that may be eligible to receive tax-deductible donations), such as churches, organizations in a group ruling and governmental entities.
  • TEOS lists organizations under their legal name or their “doing business as” name on file with the IRS. (No separate listing of common or popular names is searchable).

Please note:
If you are age 70 ½ or older, you can make a qualified charitable distribution directly from your IRA (other than a SEP or SIMPLE IRA) to a qualified charitable organization.

If you have a specific question about your tax prep relating to charitable contributions or otherwise, please don’t hesitate to give our CPAs a call.