Making a charitable donation to JAMPACT is tax-deductible, but there are some guidelines you should bear in mind. Here are 8 tax tips from the IRS to get the most deductions from your taxes when you make your donations.
1. Your contributions must be made toward a qualified organization, such as JAMPACT.
2. Charitable contributions must be stated in Form 1040 and itemized in Schedule A.
3. Sometimes, the charity may give you a gift or other form of benefit such as tickets to a dinner for free. You should deduct the fair market value of these benefits from the amount of your contributions when applying for the deduction. Then only the net balance is to be considered for tax deduction.
4. If you make a non-cash contribution such as stocks, household items, clothes etc, they should be in good condition. These items must be assessed for their fair market value and this value used in tax deduction. However, if you donate vehicles, other special rules apply. Fair market value of any property is generally defined as the price between a willing seller and a willing buyer who both have reasonable knowledge of all relevant facts. Neither seller nor buyer should be under pressing need to sell or buy.
5. If your contribution in cash or in kind is $250 or more, you should furnish the IRS with a bank record, payroll deduction records or a written acknowledgment from the charitable organization showing the amount of cash and a description of the non-cash property contributed. If your total deduction for all non-cash contributions for the year is over $500, you must complete and attach IRS Form 8283, Noncash Charitable Contributions, to your return.
Please refer to Publication 526, Charitable Contributions for further information.