There are countless deductions you can take advantage of to reduce taxable income, thus, the amount owed to Uncle Sam. Even the food donations are deductible, but as with any other tax deduction, they must meet certain requirements. The Internal Revenue Service allows taxpayers to deduct tax donations to qualifying charities. Surely, it’s a good thing to donate food to a local food bank, but it must be a qualifying charity in order for you to get a tax write-off.
What is a qualifying charity?
A qualifying charity is a nonprofit organization. If the local bank collects donations for profit, it’s not a qualifying charity. So, you cannot deduct them. The most common qualifying charities include nonprofitable charitable organizations, nonprofit hospitals, nonprofit daycares, and religious organizations. Any food donation to the above and other qualifying charitable organizations will get you a tax write-off.
Claiming food donations
To claim food donations, you must fill out Schedule A, Itemized Deductions. This also means in other words that you cannot take the standard deduction and deduct food donations.
How much can I deduct from food donations?
There is no specific maximum or minimum on how much you can deduct from the food donations. Generally, all of these deductions fall under charitable contributions and you can deduct up to 60 percent of your adjusted gross income from these donations. However, this increases to 100 percent if the donations were in cash, but, given that food donations aren’t considered as cash donations, you can deduct up to 60 percent of your adjusted gross income in food donations.
What about clothing donations?
Taxpayers can deduct clothing donations the same way as they can deduct food donations. The same rules apply to clothing donations the same way as food donations.
Do I need receipts to deduct charitable donations?
Yes, you need receipts to prove to the IRS that you’ve made these donations. But, you can deduct charitable donations without receipts for amounts up to $250. Anything over that, you need receipts to deduct. Assume your total donations are worth $2,000 but you only have a receipt for $1,500. You can write off $1,750 in total – $1,500 with receipts and $250 without.