Information About Charitable Tax-Deductible Donations
 

A short guide to help you navigate the IRS rules around charitable tax-deductible donations.

 

Donating to a registered 501(c)(3) charity like Cardiovascular Education Foundation can not only help others but also provide tax deductions to US citizens in certain cases. Here is a short guide to help you navigate the IRS rules around charitable tax-deductible donations.

 

Itemized or Standardized Deductions
 

When filing for taxes in the United States, you can either apply the standardized deduction or an itemized deduction, but not both.

 

If your itemized deductions are higher in total than the standardized deduction, you will pay less tax by using itemized deductions and listing your charitable gifts.

 

However, if your itemized deductions are less than the standardized deduction, it’s best to use the standardized method and not list your charitable donations.

 

Filing Status

• Single: $12,200

• Married Filing Jointly or Surviving Spouse: $24,400

• Married Filing Separately: $12,200

• Head of Household: $18,350

 

If you are unsure about what you can include as itemized deductions, here is an article that lists 42 potential tax deductions you could be claiming. It is also worth speaking to an accountant if you think itemized could work for you.

 

Tax Deduction Rules
 

If your personal deductions for healthcare, donations, and other expenses could total higher than the standardized deductions, below is some additional information for you.

 

Donate to a Registered Charitable Organization

 

The primary charitable tax deduction rule to consider is to make sure you give to a registered 501(c)(3) nonprofit organization like Cardiovascular Education Foundation. All nonprofit websites should list their EIN, 990 tax return forms and the IRS letter proving 501(c)(3) status.

See Cardiovascular Education Foundation’s tax information >>

 

There are many types of organizations that can be included in charitable deductions including some religious organizations, foundations, universities and schools, and others. Some carry different status than 501(c)(3) and are subject to different tax deduction rules.

 

The easiest way to confirm charitable deduction eligibility is to search for the organization’s name or EIN on the IRS website.

 

Tax Deduction Limits

 

You can include all charitable cash donations up to 60% of your adjusted gross income (AGI) for 501(c)(3) organizations like Cardiovascular Education Foundation. So if you earn $100,000, you can claim up to $60,000 as a tax deduction for charitable gifts.

 

Other types of organizations, such as some private foundations or fraternal societies, have a lower tax-deductible limit of 30% of your AGI. The best way to confirm the deduction limit for the organization you would like to support is to use the IRS charitable organization search.

 

Donating Goods

 

For most cases, you can donate personal property like cars, clothes or other goods, up to a limit of 50% of your adjusted gross income. The AGI limit is slightly lower than the 60% allowed for cash donations. There are some additional rules around donating assets, as listed on the IRS website here, which can get pretty complicated. If you plan to donate high-value goods or other assets, we highly recommend you speak with a tax advisor.

 

Charity Auctions Or Receiving Goods When Donating

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When you make a purchase at a charitable auction or receive a gift in return for a donation, you must subtract the value of the item you received from your tax-deductible donation amount.

 

Example 1: If you bid $1,500 for a vacation, and the fair market value is $1,000, the tax-deductible amount you can itemize will be $500.

 

Example 2: If you donate $50, and receive a t-shirt worth $20, you can now deduct $30.

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Deadline

 

The tax-deductible deadline is on December 31st. Donate before midnight in your timezone to make sure the gift falls in the current tax year.

 

Fundraising

When you are fundraising for Cardiovascular Education Foundation or another registered charitable organization, you can only deduct the cash donations you make yourself, not the total amount contributed by other donors.

 

Volunteering

When volunteering you can deduct your out-of-pocket expenses such as travel and accommodation, even if you go as far as another country. However, you cannot deduct the value of your time spent volunteering.

 

If you plan to deduct volunteering expenses over $250, you need a written acknowledgment from the registered charity detailing all of your costs incurred, the activities you undertook and a statement confirming that you did not receive goods or services in return.

 

How To Make A Deduction

 

Details on how to file your tax return with charitable tax deductions can be found on the IRS website here. This article is for general informational purposes and is not intended to offer legal advice. If you plan to make a significant gift we recommend talking with your accountant or a tax advisor.

 

If you would like to make a tax-deductible donation to Cardiovascular Education Foundation, follow the link below or feel free to contact us for any information you may require.