2013 Accounting Tip #4

There are many ways to get organized for taxes. Each person needs to find the way that works for them to ensure that they will stay consistent and current. We will provide you some tips at getting started, you may even find a tip that you like better than your current way of doing things.

Start a folder for Charitable Deductions for each Calendar year.  As you make the deductions, make sure to put a copy of the receipt in the folder so that you have them all in once place when you file your tax return the next year.

In order to deduct your charitable contributions on your tax return, you will need to have the backup records to support this.  This means that no matter how the transaction occurred whether it was by Cash, Check, Money Order, Credit Card, or donation of goods, your records need to include all paperwork regarding the transaction that includes a receipt from the Charitable Organization or your bank record if you were not given a receipt.

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