If you want to lower your tax deductions, there are a number of eligible donations which can help you to do just that. Charitable donations are quite helpful in helping you to achieve substantial tax savings and you can make a very large and profitable difference in your refund.
However, there are actually some restrictions that may be implied. Here are some examples of the restrictions which will apply to you:
- Donations have to be made to a nonprofit organization which can prove 501(c)(3) tax status.
- You need to be able to present your receipt to prove that you have made donations to legitimate nonprofit organizations.
- You need to ensure that you are aware of the allowed amount of donations you may deduct. It’s a great idea to consult with one of our professional accountants so that you stay within the allotted range.
There are a number of other common expenses, that are also charitable donations, which should be deductible from your tax bill. We’ll show you what they are…
- Cash: You may be able to deduct cash donations you have made to nonprofits.
- Tithes: If you pay tithes to churches and other types of religious organizations, you may deduct these from your tax bill.
- Property: You would be able to deduct donated furniture, real estate, electronic equipment, clothing, etc.
- Mileage: You may be allowed to deduct the portion of the mileage that was used if you used your car to assist a nonprofit organization or cause.
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