Hurricane Harvey Donations and Tax Deductions – Check Details
- September 14, 2017
- Posted by: [email protected]
- Category: Blog, IRS, Taxes
We all know that Hurricane Harvey has hit the Texas coast claiming huge damage to lives and property. Harvey was a catastrophic hurricane that caused major flooding and has displaced around 30,000+ people. Economic losses are estimated to reach up to a striking $200 billion, which includes numerous uninsured homeowners. It is a time to unite and become useful for the hundreds of needy families, children, and pets.
Some Of The Tips To Keep In Mind While Donating For Harvey:
Cash is preferred: While you might want to donate in kind, there are charity organizations which prefer cash over kind. Basically, it helps them arrange for specific and immediate requirements of the victims. For those who donate cash, it’s advisable to not forget to take receipts if you are planning tax returns.
Out of pocket expenses are considered: There is no denial that serving people through your presence is the best form of service. But, that may not fall under the tax claims as IRS allows tax relief for the out-of-pocket expenses but not your presence or valuable time. If you are donating in-kind then save the receipts to show the tax authorities that you have paid for the items required by the charity organization.
Watch out time: You may receive calls from organizations and volunteers seeking donations for Harvey, but you need to be careful. Gather information regarding the authenticity of the charitable organization. You can visit IRS website to check their charitable status. Examine their security parameters if you donate through cheque or credit cards. Keep records of donations made as it will help you get tax deductions.
IRS chooses organizations over individuals: You will get tax benefits on donations only if donate to organizations that qualify for tax exemption. Donation made to individuals or volunteers are not considered for tax exemption as there are chances of scam or misuse of money. Therefore, consult an experienced tax services provider to ensure that you get tax benefits for money spent on good causes. Again, it is advisable to donate to organizations that have been in existence for a while as newfound charitable trusts may not have the experience or expertise to handle urgent relief supply for such catastrophes.
Documentation plays a vital role: Talk to your tax professional in Texas about the importance of keeping documents like receipts of gifts, cash or kind. These documents are useful in managing your taxes at the end of the year. It is important to keep the docs in place even if you don’t claim tax exemption in the near future.
With these tax rules in mind, let us make huge donations and save taxes. For any queries related to tax rules on charities and donations, feel free to contact our team of tax experts in Austin. We are ready to help and serve – Contact Us Now!!