Helping out others could also help you out during tax season, just be sure to keep track of your spending!
FOX Business Network’s Tracy Byrnes explains charitable deductions:
Making the most of your charitable deductions.
I’m Tracy Byrnes with the FOX Business Network, here with Tracy’s Tax Tips.
Many people remember the big charitable donations they make but they often overlook the little out-of-pocket costs they incurred and they can add up, too.
You can deduct all out-of-pocket costs you incurred while doing your good deeds. So the ingredients for that casserole you made for a nonprofit organization’s soup kitchen, are all deductible as charitable contributions. Same goes for the stamps you bought for your school’s fundraising mailing. And if you drove your car for charity in 2012, remember to deduct 14 cents per mile.
Just be sure to keep a log of all these out-of-pocket expenses in case Uncle Sam ever comes knocking. And keep all your receipts too.
And if your contribution totals more than $250, you’ll need an acknowledgement from the charity documenting the services you provided.
I’m Tracy Byrnes, FOX News Radio.