Friday, December 28, 2012

Cash Not Needed To Make Tax deductible 2012 Donations

Short on cash but want to make a charitable donation in time to deduct it from 2012 income? The IRS reminds us that donations charged in 2012 can be applied to our 2012 tax returns even if we don't pay the bill until 2013.

"Contributions are deductible in the year made. Thus, donations charged to a credit card before the end of 2012 count for 2012. This is true even if the credit card bill isn’t paid until 2013. Also, checks count for 2012 as long as they are mailed in 2012. Check that the organization is qualified."

Of course, the deduction applies only to those who itemize.

More year-end tax saving strategies are in this December 19th release from the IRS.