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Donating to charities can be one of the most rewarding things that you can do, but most people do not know that it can help you in return. Many times, you can actually save money when you give to others.
When you donate money, food, clothing, toys or other items to a charity, always make sure that you ask for a sheet showing that you did so. This can be used as evidence to get deductions for charitable donations on your taxes. Keep them in a journal or expense record noting the date, items and the estimated value of what you donated. These can quickly add to tax savings at the end of the year.
These records can also be easily gotten when you donate online or through your cell phone. If you text a donation or pay through an online site, you can easily print off a record of the transaction. Your phone bill will have the details of a donation as well. Keep track of these throughout the year and you will be amazed at what you can save at tax time.
You should ask your accountant or tax preparer what items are eligible for deductions, what records you should keep and any limitations that there are. This will help you to keep better track of what you are donating and what you can count as deductions. These regulations can change each year, so be sure to ask your preparer for information on the most current limitations and restrictions.
