Making the Most of Your Charitable Contributions
- December 20, 2022
- Posted by: CKH Marketing
- Categories: Financial Tips, Tax tips
With the holidays knocking at the door and the end of the year approaching fast, acts of charity can go a long way. Not only for those in need, but for yourself too. It is important to note that charitable contributions can only impact your tax bill if you choose to itemize your return. However, if you are doing so, this is a comprehensive guide to utilizing the Charitable Contributions tax deduction.
The limit for what you can deduct is 30% of your adjusted gross income (AGI) for non-cash contributions (such as donating shares of stock or real estate). And for cash contributions, the limit is 50% of your AGI. For example, a couple with an AGI of $100,000 can deduct up to $50,000 of cash donations to charity each year. But any charitable donations above those amounts are not eligible for a tax deduction.
For Non-cash contributions, the limit to make a deduction without a receipt is $500 and often require an appraisal to assess the fair market value of the item being donated. If the appraised value is $5,000 or less, then you will just need to hold onto the appraisal in case of an audit. And cash contributions under $250 do not require a receipt from the organization. Anything above $250 will require some form of written recognition of your contribution to confirm your claim.
To make sure you take advantage of your charitable contributions, you can amend your tax return by utilizing the IRS Schedule A form. To learn more about what CKH Group can do for you, then reach out and let’s chat, you can book a free online consultation, or you can contact us at 1-770-495-9077 or email us at email@example.com
The above article only intends to provide general financial information and is based on open-source facts, it is not designed to provide specific advice or recommendations for any individual. It does not give personalized tax, financial, or other business and professional advice. Before taking any form of action, you should consult a financial professional who understands your particular situation. CKH Group will not be held liable for any harm/errors/claims arising from the articles. Whilst every effort has been taken to ensure the accuracy of the contents we will not be held accountable for any changes that are beyond our control.