Claiming charitable donations

Overview

Donating to qualified charities doesn't just feel good—it can also lower your tax bill. If you itemize your deductions, you can claim charitable contributions made during the year.

Cash Donations

Cash donations (including checks, credit cards, and electronic transfers) are the most straightforward to claim. To deduct them, you need:

• A **receipt or bank record** for any donation
• A **written acknowledgment** from the charity for donations of $250 or more
• The charity must be a **qualified 501(c)(3) organization**

AGI Limits

There's a cap on how much you can deduct:

• **Cash donations:** Up to **60%** of your Adjusted Gross Income (AGI)
• If you exceed this limit, you can carry the excess forward for up to 5 years

Non-Cash Donations

Donated clothing, furniture, electronics, or other goods? You can deduct their fair market value. Some guidelines:

• Items must be in **good or better condition**
• For donations worth **over $500**, you need to file Form 8283
• For donations worth **over $5,000**, you generally need a qualified appraisal
• Goodwill and the Salvation Army have valuation guides online to help estimate fair market value

How to Enter in FileJoy

Cash Donations

1. Click **Deductions** in the left sidebar
2. Select **Charitable donations**
3. Click **Add Cash Donation**
4. Enter the charity name, date, and amount
5. Save

Non-Cash Donations

1. Click **Deductions** in the left sidebar
2. Select **Charitable donations**
3. Click **Add Non-Cash Donation**
4. Enter the charity, description of items, date, and fair market value
5. Save

What Doesn't Count

Not everything qualifies as a charitable donation:

• Donations to individuals (GoFundMe for a friend, etc.)
• Political contributions
• The value of your time or services
• Raffle tickets or charity auction purchases (only the amount above fair market value)

Tips

• Keep all receipts and acknowledgment letters with your tax records
• Use a credit card for easy record-keeping—your statement serves as documentation
• If you're unsure whether an organization qualifies, search the IRS Tax Exempt Organization Search tool