Charitable Donations and Taxes: What You Need To Know

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Christmas is a time of giving, so chances are good that you are considering making a donation to lighten up someone’s Christmas. If that’s the case, read on to discover some useful tax tips to keep in mind this holiday season.

Charitable Donations and Taxes: What You Need To Know

First things first: remember that in order to claim a deduction on your 2022 tax return, you must donate to a tax-exempt organization by December 31 2022.

Another important point to consider is that, in general, you can only deduct charitable contributions if you itemize deductions on schedule A (although an exception was made for 2021 returns).

While most charitable tax donations qualify for the deduction, there are some exceptions. For example, donations that are not tax deductible include those:

  • Made to a supporting organization
  • Intended to help establish or maintain a donor advised fund
  • Carried forward from prior years
  • Made to most private foundations
  • Made to charitable remainder trusts

A charity must have something known as 501(c)3 status if you want to deduct your donation on your federal tax return. You can check an organization’s 501(c)3 status by using the IRS’ Tax Exempt Organization Search tool.

For most people, making a donation means donating funds. However, If you donate property other than cash, you may generally deduct the fair market value of the property.

It’s also worth noting that the term “cash” doesn’t refer to physical money only. For tax purposes, cash contributions include those made by check, credit card or debit card as well as unreimbursed out-of-pocket expenses in connection with volunteer services to a qualifying charitable organization.

If you need help making sense of charitable donations and how to claim them on your tax return, feel free to contact our experts. We’ll be happy to offer assistance and answer all your questions.

Have Tax Questions? At JT Tax Services, We’ve Got Answers

At JT Tax Services, we give you the peace of mind that comes with knowing that you are limiting your liability while staying compliant with all regulations.

We are located in Oxnard, California, contact us today by email (, telephone (805-984-8890), or through our social media accounts on Facebook, Twitter, and LinkedIn to schedule a consultation or to learn more about our services.

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