I have heard something about a $500 rule for donating, but an confused? does anybody know the rules about donating and using them when I itemize my taxes?
2007-08-09 01:37:29 · 2 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
The $500 rule is if you donat non-cash contributions and the amount is over $500 then you need to fill out another form, Form 8283 and include that with your tax return. I have also attached a link to info about charitable contributions.
2007-08-09 02:06:37 · answer #1 · answered by Anonymous · 2⤊ 0⤋
Maybe - there are a number of rules to be able to deduct a contribution - see http://www.irs.gov/newsroom/article/0,,id=106990,00.html and the links from that page. It must be made to a qualifying organization, you must have documentation, usually a receipt from the organization, and you have to itemize in order to deduct the contribution.
If you can deduct it, then it will reduce your taxes by a percentage of the contribution. If you donate $200 and are in a 15% bracket, then your taxes would be reduced by as much as $30.
2007-08-09 04:02:54 · answer #2 · answered by Judy 7 · 0⤊ 0⤋