15760 Ventura Blvd, Suite 610 Encino, CA 91436
FREE CONSULTATION818-436-2775
15760 Ventura Blvd, Suite 610 Encino, CA 91436
FREE CONSULTATION818-436-2775
Blog
Personal, Affordable Payroll Services, Bookkeeping, and Tax Processing for Small Business throughout Los Angeles County.

Tax-Deductible Donations: Which Donations Can You Claim? Which Donations Can You Not Claim?

Throughout the year we’re constantly thinking of ways to lower our tax threshold and save some money at tax time. What better way to do that than to make charitable donations, right? 

Well, yes and no. 

Making charitable donations is a great way to support your favorite causes and potentially receive a tax deduction on your taxes. However, you need to know that not all donations are created equal when it comes to tax deductions. 

Let’s see which donations are tax-deductible and which ones are not.

How Come My Donation Wasn’t Tax Deductible? 

If you’ve ever donated to a charity, you may have wondered if your donation was tax-deductible. Unfortunately, not all donations are deductible. Crazy, right?

Since we as a society donate approximately 2% of our personal income to charities and nonprofit organizations, thinking that any of our donations are not tax-deductible is ludicrous and enough to make us rethink even donating at all. 

But before you pull the plug on donating all together just listen. There are legitimate registered organizations that you can make donations to.

The IRS classifies for tax purposes certain charities and nonprofits according to their mission and organizational structure.  Each group must register with the IRS. For example, a religious and charitable organization would typically fall under section 501(c)(3). 

Any cash donations or property donations to these organizations are tax-deductible.

Plus you’re allowed to claim up to $300 dollars for a standard deduction individually or $600 jointly. Anything above that would need to be itemized in your tax returns to see any real benefit.  

What About Donations to Political Organizations-Are They Tax Deductible? 

Short answer, no. Donations to any political organizations are not tax-deductible. AND THE IRS MAKES THAT PRETTY CLEAR!

BUT if that political organization has a separate public charity that is registered and accepted by the IRS, then a donation to that charity would be tax-deductible. Just a little bit of a loophole to know and in this day and age, knowledge is power!

There are some restrictions on what type of donations people can make in order to receive a tax deduction. 

Therefore, it is important for you as a  taxpayer to keep track of all your donations so you can accurately report them on your tax return.

Donating to charities and organizations for a tax deduction can be a bit tricky. Especially, if you do not know what they are classified as. 

But don’t worry!

If you have any questions about whether or not your donation is tax-deductible, please reach out to me today. I will give you detailed knowledge on what is and is not allowed for any type of tax deduction purposes.