Giving donations to charity from time to time could provide you with some tax benefits. American taxpayers can use various tools to determine if their charitable donation could be deducted on their tax return, which makes the process a little easier. Still, there are some things tax payers should know about charity deductions, so we have created a brief overview below of things to consider when deducting a charitable donation.
The Qualified Charity
To deduct a charitable donation, the taxpayer must ensure the charity is qualified. A qualified charity means that the charitable organization has obtained a special status from the government, so taxpayers can give a donation to this charity and deduct it on their tax return.
There are many ways to find out if a charity is qualified. Most charities will mention this on their website, but sometimes it is best not to just take their word for it. Before you donate, simply check the status of a charity on the IRS website.