Count up those donations and get a tax break!
With the Fiscal Cliff looming in 2013, families much do as much as we can to cut our taxes in 2012. Donations and charitable contributions are one way to do just that. Make sure that you make your donations the right way, or you may lose out on valuable deductions.
I know December is busy, but if you can take a few hours out of the afternoon for a day or two to collect and deliver donations, you’ll start the new year off with a little financial kickstart, and chances are that your home will be less cluttered, too.
Itemizing is Important
If you want to get the most value out of your donation on your taxes, you’ll want to keep a record of the items that you donate. Grab a small notebook and jot down each item, being specific. You don’t have to name each clothing item, but you should account for a bag of clothing by the number and type of pieces. For example, “16 boys shirts and pants” should be sufficient. The same goes with books or other small items that can be grouped.
Price Your Donations
It is up to you, not the charity, to put a value on the items that you donate. Do some research online or if you are donating to a thrift store, visit the store to see how they price items. Remember that these stores sell items for more money than you might see at a yard sale, so value your donations accordingly.
Donating Clothing and Household Goods
If your family is like my family, the bulk of your donations will come from clothing and household goods. Go through each room in the house with a large box and gather whatever is outgrown, has lost its useful life, is ignored, is not waned, or is a duplicate. You may also want to have a trash bag with you, too, for anything that is broken, torn, or just trash.