You may have had the best intentions when you made a charitable donation in 2008, but don't expect the IRS to take your word for it. Be prepared to substantiate any amount you claim as a charitable deduction on your 2008 tax return.
First, you must itemize your deductions in order to write off a charitable donation. Then, you must have a receipt for every contribution you claim. It used to be that you only needed a receipt for donations of $250 or more. No more. Now it's no receipt, no deduction -- regardless of the amount. You need a canceled check or other bank record or a written acknowledgment from the charity noting the date and amount of your contribution. Payroll receipts or pledge cards for donations made through payroll deduction are also acceptable proof.
Gone, too, are the days when you could donate your old car to a local charity and claim a deduction for the fair market value. "There was a strong suspicion that people were greatly inflating the value of cars they donated to charity, claiming the top Blue Book price for clunkers that had to be towed away," says Mark Luscombe, principal federal tax analyst for CCH, a tax and accounting information service.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Since 2005, taxpayers who give a car valued at more than $500 to a charity have to meet stringent substantiation requirements. You must obtain a form from the charity that identifies you as the donor and listing your Social Security number and the vehicle identification number. If the charity sells the vehicle without using it or fixing it us -- which is the most common case -- you can only deduct the amount the charity received from the sale. Attach the statement that certifies the sales price to your tax return.
You cans still claim a deduction for donating used clothing or household goods that are in "good condition or better". You should value your donations as they would be priced in a thrift store. Or, you can use a computer program such as "It's Deductible" that is included in TurboTax tax preparation software (which comes with advice from Kiplinger's). It estimates the value for of each donated item and figures the total deduction.
Although you can't deduct the time you devote to a charity, you can deduct the expenses you incurred while contributing your service to a qualified organization, such as driving your car to deliver meals to the home bound. For 2008, you can claim 14 cents per mile for auto expenses related to charitable works.
Sign Up: Get Tax Tips E-mailed to You
Find more deductions with our Taxopedia. Plus see our Tax Center for all the tax information you need.
-
Stocks Keep Climbing as Fed Meeting Nears: Stock Market TodayA stale inflation report and improving consumer sentiment did little to shift expectations for a rate cut next week.
-
Your End of Year Insurance Coverage Review ChecklistStop paying for insurance you don't need and close coverage gaps you didn't know about with this year-end insurance review.
-
Crypto Trends to Watch in 2026Cryptocurrency is still less than 20 years old, but it remains a fast-moving (and also maturing) market. Here are the crypto trends to watch for in 2026.
-
Are You Middle-Class? Here's The Most Tax-Friendly State For Your FamilyTax Tips We found the state with no income tax, low property tax bills, and exemptions on groceries and medicine.
-
Social Security Benefits Quiz : Do You Know the IRS Tax Rules?Quiz Social Security benefits often come with confusing IRS tax rules that can trip up financially savvy retirees and near-retirees.
-
How Are I Bonds Taxed? 8 Common Situations to KnowBonds Series I U.S. savings bonds are a popular investment, but the federal income tax consequences are anything but straightforward.
-
Capital Gains Tax Quiz: How Well Do You Really Know IRS Investment Tax Rules?Quiz Take our capital gains tax quiz to test your investment taxes knowledge. Learn about loss rules, holding periods, and tax incentives that could impact your savings.
-
6 Tax Reasons to Convert Your IRA to a Roth (and When You Shouldn't)Retirement Taxes Here’s how converting your traditional retirement account to a Roth IRA can boost your nest egg — but avoid these costly scenarios.
-
Could Tax Savings Make a 50-Year Mortgage Worth It?Buying a Home The 50-year mortgage proposal by Trump aims to address the housing affordability crisis with lower monthly mortgage payments. But what does that mean for your taxes?
-
3 Ways High-Income Earners Can Maximize Their Charitable Donations in 2025Tax Deductions New charitable giving tax rules will soon lower your deduction for donations to charity — here’s what you should do now.
-
An HSA Sounds Great for Taxes: Here’s Why It Might Not Be Right for YouHealth Savings Even with the promise of ‘triple tax benefits,’ a health savings account might not be the best health plan option for everyone.
