Last minute reminders…
With April 15th just a couple days away, we want to remind everyone that taxpayers can receive a six month extension to file their taxes. As always, we remind you that it is not an extension for payment as your 2014 tax liability must be paid by April 15th; however, the extra six months can eliminate the panic of getting together all the necessary forms and documents needed for filing your tax return.
Along the same lines, we remind you that you may still be able to make an IRA contribution deductible on your 2014 taxes. See this article for more information.
Good Records Key to Claiming Charitable Deductions
As the countdown to April 15th hits the home stretch, the IRS has published a series of articles guiding taxpayers through some of the trickier filing issues. One of our favorites discusses charitable giving and the importance of maintaining good records.
Among the key takeaways:
- Make sure the entity you’re giving to is a qualified organization. Keep in mind that an organization being a nonprofit doesn’t necessarily mean that a gift will be deductible. The IRS’s Select Check tool is a great resource for determining whether the organization you’re thinking about donating to is eligible to receive tax-deductible donations.
- Keep in mind donors must have a written acknowledgement of any gift over $250. So when you receive a letter from a charity acknowledging your gift, it’s not just a receipt – make sure you put it in the proverbial (or often literal) shoe box for tax time!
- Rules may differ depending on the substance of the donation. Check out the article for tips on donations of cash, vehicles, clothing, and others.
- Finally, keep in mind the timing requirements. A gift must have been made in 2014 to be deducted on the 2014 tax return; so if you pledged money but didn’t write the check or charge the card, it isn’t deductible.
Head on over to the IRS article linked above for more details.
And as always, know that we’re always here to help with any tax-time questions about donations (or anything else)!