Everyone wants to be a good person in some way or another. Maybe it’s just human nature to want to help out, but it should still be noticed as something great. It only makes sense that those who do good in the world get something positive in return. Luckily, the IRS likes to recognize people who give to charities and organizations that support those in need. If you’ve ever made a large donation of some sort, you may be familiar with the tax benefits that come with charity. When you donate to a non profit organization, you qualify for some decent tax breaks during the following filing season. Here’s the breakdown on charitable tax breaks and how the IRS handles large donations.
To make things as easy as possible, the IRS website has a list of qualifying charitable organizations that can get you a tax break. Some foundations may not count toward what gives you a break, but there are tons of other ones that fit the bill. For anyone who has a large sum of extra spending money this year, it’s worth looking into so you can do some good and save on taxes. There are so many organizations that qualify that you’ll find a couple to be passionate about in no time.
In addition to a list of charities that qualify for tax benefits, the IRS website also provides information on different types of donations. Businesses and individuals each have a list of different charitable contributions they can make. Isn’t it pretty awesome that the government gives so many options that make people want to donate? It’s enough to make almost anyone believe that there’s a lot of good in the world.
If you’ve kept up this far, you might be wondering what steps you need to take after making a large donation. Donations in general are required to be a cash contribution and made during the calendar year that is being claimed. Depending on the type of donation, and where it went, there are different paths to filing your taxes. As a charitable organization, the receiver is required to file specific tax forms confirming the donation. The donor is allowed to claim a certain percentage of their donation as tax exempt when filing. Individuals get to claim a much higher percentage than businesses do, but the extra amount for either can be carried over into the next year. If you make a noticeable donation that lets you reap the benefits of being a good person, then look into how you can save on your taxes. Find out more!