As 2012 comes to a close, individuals and businesses need to remember some key tax provisions for making contributions to charity. The IRS offers these reminders for year-end giving:
- To deduct monetary donations you must have a bank record or written document from the charity stating the name of the charity, the contribution amount and the date.
- Contributions are deductible in the year made, even if the credit card bill isn’t paid or the check isn’t cashed until 2013.
- Only donations made to qualified organizations are tax deductible. Make sure the organization you want to donate to is qualified before making any contribution.
- Individuals must itemize their deductions on Form 1040 Schedule A or use a short form (Form 1040A and 1040EZ) to claim the standard deduction.