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What Types of Donations are Tax Deductible?

If you made a charitable donation over the past year you may be wondering what you can write off on your taxes.

You may want to make a donation for the sake of the holiday season or to use it as a tax deduction (or both).  Keep in mind, only if you are itemizing your deductions while filing your taxes, you can write off charitable donations to those falling within “Qualified Organizations” list.

Charitable Contribution Deduction Facts:

  • You may deduct charitable contributions of money or property that you made to a qualified organization only if you itemize your deductions on Form 1040 .
  • Generally charitable deduction limits are up to 50% of your adjusted gross income
  • Contributions must be paid in cash or other forms of property before the end of the tax year in order to be deductible when itemizing your tax deductions
  • For items of property (items other than cash) donated, the fair market value of the item will be deducted on your tax return.
  • When making donations, it’s best to write checks (that way you can easily track your offerings)
  • The IRS  Publication 526 explains Charitable Contributions and tax deductible donations.

What Organizations are considered “Qualified Organizations” to donate to?

In order to consider a charitable contribution a tax deduction when itemizing your deductions it must be made to certain types of organizations. The list of qualified organizations is as follows: Continue reading “What Types of Donations are Tax Deductible?”

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Itemizing Deductions on Income Tax for Truck Drivers

Deductions for truck drivers could significantly reduce their overall tax burden

Truck driving can be hard and expensive work. Thankfully you may be able to lower your tax burden by deducting some of your expenses.

If you are an employee, you can take these deductions on Schedule A [Itemized Deductions]. If you are a statutory employee or are self-employed, you can take these deductions on Schedule C [Profit or Loss from Business].

Here are some of the deductions you can claim:

  • vehicle expenses – you can deduct parking fees and tolls, standard mileage rates (or else the actual expenses), as well as maintenance, repairs, and supplies, which can include oil changes, tuneups, vehicle inspections, tie-down straps, jumper cables, chains, tarps, fuel, bungee cords, floor mats, etc.
  • personal care items – things you need to take care of yourself when you’re on the road including shaving supplies, tissues, laundry detergent, fabric softener, towels, toiletries, pillows, sheets, sleeping bags, grooming supplies, and hand cleaners, as well as shower and laundry facilities Continue reading “Itemizing Deductions on Income Tax for Truck Drivers”
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iPad Tax Deduction

How to deduct your tablet computer on your taxes

All you Apple addicts out there will be happy to know that you can deduct the cost of your iPad. In order to take the deduction, however, you must actually use your iPad for business. If all you do is play Angry Birds on the subway or entertain your petulant children in the backseat you won’t get any tax benefit.

Business Expense

If you operated a business or practiced a profession as a sole proprietor than you can very likely claim the cost of an iPad as a business expense.

As far as the IRS is concerned, the same rules that govern computers also govern iPads. In order to deduct your iPad (or anything else for that matter) it must be usual, necessary, customary, and reasonable for the type of business that you are engaged in.

In order to take a deduction you must have acquired your iPad specifically for use in your trade or business. You can use your iPad for personal purposes too, but at least 50% of your use must be for business. Continue reading “iPad Tax Deduction”