Tracy’s Tax Tips #8: Charitable Donations Go Further Than You Think

Being a giver has its benefits when it comes to filing your tax return.

I’m Tracy Byrnes with the FOX Business Network, here with another of Tracy’s Tax Tips:

Well, many people remember the big charitable donations they make, but they often overlook the little out-of-pocket costs they incurred and what they can add up to. ?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 a charitable contribution. ?The same goes for the stamps you bought for your school’s fundraising mailing. ?And if you drove your car for charity in 2011, remember to deduct $.14 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 $250 for more, you’ll need an acknowledgement from the charity documenting the services you provided.

I’m Tracy Byrnes, FOX News Radio.