Tax question aboot donations

[MaxDepth]

I would like to donate to Blaine Kerns Krewe of Boo this year and I see that I can give the money they are asking for, directly to the GNO First Responders Fund. This fund is a 501c3 group.

My questions:
1. If I give directly to the fund, how do I apply this to my taxes for 2008?
2. Is there a limit of giving to charities?


Thanks.

PS - Is there a place within the IRS website that will know now how much I can donate for tax purposes?

EDIT: I've been readin off of this site (So you wanna donate to charity?)

 

[MikeyIs4Dcats]

if it is a tax exempt organization, you will need to obtain a receipt for your donation. Keep that on file and claim the amount donated on your taxes. Your tax forms or software will have instructions on how much credit you receive.

 

[ICRS]

Remember though if you take the standard deduction charitable contributions are NOT tax deductable. You can only deduct charity of you itemize your deductions.

 

[MaxDepth]

Ahh....I think I've answered some of my own questions.

if you donate less that 20% of your Adjusted Gross Income in a particular year, you can deduct it all.

Also, the IRS link.


As an example: if I make $60K, adjusted down to $50K - I could donate up to $10K. Of course, I need to make sure that I adjust the donation to incldue fair market value on anything I make get from the charity or organziation is exchange for my donation.

In this case, the Krewe of Boo (halloween parade in New Orleans this year) is asking for donations of $650. This includes a costume, a ride on one of the floats and tickets to the Halloween party. The party is $100/couple, the costume ??? and the ride is ???. I think I can delcare the ride to be free and the costume to be $40-50. So my donation is really

650 - 100 - 50 = $500 right?

 

[CPA]

Originally posted by: MaxDepth
Ahh....I think I've answered some of my own questions.

if you donate less that 20% of your Adjusted Gross Income in a particular year, you can deduct it all.

Also, the IRS link.


As an example: if I make $60K, adjusted down to $50K - I could donate up to $10K. Of course, I need to make sure that I adjust the donation to incldue fair market value on anything I make get from the charity or organziation is exchange for my donation.

In this case, the Krewe of Boo (halloween parade in New Orleans this year) is asking for donations of $650. This includes a costume, a ride on one of the floats and tickets to the Halloween party. The party is $100/couple, the costume ??? and the ride is ???. I think I can delcare the ride to be free and the costume to be $40-50. So my donation is really

650 - 100 - 50 = $500 right?

Correct.

 

[kranky]

Originally posted by: CPA

Originally posted by: MaxDepth
Ahh....I think I've answered some of my own questions.

if you donate less that 20% of your Adjusted Gross Income in a particular year, you can deduct it all.

Also, the IRS link.


As an example: if I make $60K, adjusted down to $50K - I could donate up to $10K. Of course, I need to make sure that I adjust the donation to incldue fair market value on anything I make get from the charity or organziation is exchange for my donation.

In this case, the Krewe of Boo (halloween parade in New Orleans this year) is asking for donations of $650. This includes a costume, a ride on one of the floats and tickets to the Halloween party. The party is $100/couple, the costume ??? and the ride is ???. I think I can delcare the ride to be free and the costume to be $40-50. So my donation is really

650 - 100 - 50 = $500 right?

Correct.

But only if the OP itemizes deductions - right, CPA?

 

[EagleKeeper]

Originally posted by: kranky

...

But only if the OP itemizes deductions - right, CPA?

Correct

 

[EagleKeeper]

The party may be $100/couple, however, that may be the requested donation, not the actual value.

Look at it as if the party was a dinner and then what would the equivalent dinner cost out on the town. That is the actual value of the party which may be less than the $100/couple which increase the actaul donation value.

 

[ICRS]

Originally posted by: EagleKeeper

Originally posted by: kranky

...

But only if the OP itemizes deductions - right, CPA?

Correct

Which sucks because I donate $800 a year to charity but I can't itemize since I don't have enough yet.

 

[EagleKeeper]

Originally posted by: ICRS

Originally posted by: EagleKeeper

Originally posted by: kranky

...

But only if the OP itemizes deductions - right, CPA?

Correct

Which sucks because I donate $800 a year to charity but I can't itemize since I don't have enough yet.

That is a big issue with people that rent.

There have been proposals floated to allow charitable deductions outside of the Schedule A - but nothing ever comes of it.

 

[Atomic Playboy]

Originally posted by: MaxDepth
Ahh....I think I've answered some of my own questions.

if you donate less that 20% of your Adjusted Gross Income in a particular year, you can deduct it all.

Also, the IRS link.


As an example: if I make $60K, adjusted down to $50K - I could donate up to $10K. Of course, I need to make sure that I adjust the donation to incldue fair market value on anything I make get from the charity or organziation is exchange for my donation.

In this case, the Krewe of Boo (halloween parade in New Orleans this year) is asking for donations of $650. This includes a costume, a ride on one of the floats and tickets to the Halloween party. The party is $100/couple, the costume ??? and the ride is ???. I think I can delcare the ride to be free and the costume to be $40-50. So my donation is really

650 - 100 - 50 = $500 right?

I'm a gift processor for a 501(c)(3) organization, and I can tell you right now that organizations are required to issue you a tax receipt AND tell you how much of your contribution is tax-deductible. So, for example, if we sell different levels of RSVP seating to our annual auction, but any portion above $40 is tax-deductible, we would issue a receipt to someone who bought a $40 ticket telling them that nothing is tax-deductible, whereas someone buying a $200 ticket would get a receipt informing them that $160 was tax-deductible.

The Krewe of Boo should provide you with such a receipt. If they do not, you can call and ask for an itemized receipt that includes valuation and gives a specific amount you will be able to claim on your taxes.

 

[MaxDepth]

At what point do I itemize deductions? I don't think I read that far into the documents or I failed to understand it. Is there a minimum level? And is it by how much I earn?

Edit: Yup, I can verify what Atomic Playboy says about the receipt. I donated $200 already to the Durham Preservation Society as they are renovating the original Durham Bulls Stadium, the one seen in the movie, Bull Durham. In return for the donation, we got a free ticket to Durham's Beerfest, our names to be on a sign as contributors and on two seats in the stadium of our choosing. I think I was lucky enough to get the two seats used by Annie and the other girl in the Bull Durham movie.

They sent me a letter that detailed all this and wrote that I could deduct $120 on taxes from the $200 contribution (minus $40 for the beerfest ticket and $20 for the two seat IDs)

Originally posted by: EagleKeeper

Originally posted by: ICRS

Originally posted by: EagleKeeper

Originally posted by: kranky

...

But only if the OP itemizes deductions - right, CPA?

Correct

Which sucks because I donate $800 a year to charity but I can't itemize since I don't have enough yet.

That is a big issue with people that rent.

There have been proposals floated to allow charitable deductions outside of the Schedule A - but nothing ever comes of it.

 

[kranky]

For 2008 returns, the threshold is $10,900 for married couples filing jointly. If your allowable deductions are above that amount, you itemize. If not, you take the standard deduction of $10,900. Single filers is $5,450.

 

[EagleKeeper]

Look at the state income tax withheld for a pay period and multiply that to equal a years withholding.

If you rent, you are out of luck.
If you own a place, add up the interest and the property taxes.

Add up all charity donations.

Over Kranky's number, itemize

Under, give yourself a warm fuzzy.

There are other items, but they are minor (gravy) and probably will not come into play unless you are within a couple of hundred

 

[MaxDepth]

Thank you all!