Posted on | April 17, 2012 | Comments Off on Charitable Tax Deductions That May Surprise You
There are many people who make charitable donations every year and document them so that they can be claimed as tax deductions. However, many of us fail to take all of our charitable donations into consideration when going through our tax deductions, with some failing to even realize that some of the donations they have made are tax deductible.
There are in fact many charitable tax deductions that may apply to you without you even realizing it, and some people are very surprised to learn about the various donations that are actually tax deductible. Some of these donations are ones that you might make off the cuff without even thinking about it – such as sponsoring someone that you know for an event – but it is important to make a note of even these small donations, as it all adds up and could make quite a difference to the overall amount you can claim on charitable donations.
Some of the surprising charitable donations that you may never have thought of logging down as being tax deductible include:
- Sponsoring a person you know: A huge number of us sponsor people that we know, often many times a year, for things such as fun runs and sports events to raise money for a good cause. Whilst you may not be sponsoring a huge amount, every little helps, so you should make sure you have a record of it in the form of a statement of you paid by card or cheque or a receipt if you paid by cash
- Getting to sites where you volunteer: There are many people that like to volunteer to help out at good causes, which often involves going to one of the charity’s sites. Whether you take public transport or drive yourself to the site, the amount that you spend in terms of fare or mileage can be claimed. This is something that many people overlook, but if you volunteer and travel to the site regularly it can amount to a tidy sum. Bear in mind that you can only claim if you are not being reimbursed for your travel
- Cooking for charity: There are some people that devote their time to cooking for charity, whether it is to feed people such as the homeless or to prepare something as a prize or a competition. If this is something that you do, make sure you keep a record of the cost of the ingredients as this is something that you should be able to claim back
- Donations of items you have purchased: Some people give to charity not by donating cash but through items that they have purchased. You can claim back for the cost of the purchased items – just keep the receipt and a record of which charity they have been donated to
- Donating used items: Many people would never think that they could claim against used items that are donated to charity, but you can. You need to look at the cost or fair market value (whichever is the lowest) to work out the value of the donation you have made
These are just some of the charitable donations that many people overlook when working out their tax deductions. It is important to think not only about the more obvious donations that you make, but also the everyday donations that you might make, which can easily be overlooked.
Esther is a blogger and journalist who writes about loans, mortgages and other financial issues. She also maintains a blog for paydayloansuk.org.uk.
- Unusual Tax Deductions You Should Not Claim (2012taxes.org)