IRS has tips on charitable giving, etc.

IRS information

December is traditionally a month for giving generously to charities, friends and family. But it’s also a time that can have a major impact on the tax return Americans file in the new year. Here are some “Season of Giving” tips from the IRS covering everything from charity donations to refund planning:

• Contribute to Qualified Charities. For those who plan to take an itemized charitable deduction on their 2012 tax return, a donation must go to a qualified charity by December 31. Ask the charity about its tax-exempt status. People can also visit IRS.gov and use the Exempt Organizations Select Check tool to check if a favorite charity is a qualified charity. Donations charged to a credit card by December 31 are deductible for 2012, even if one pays the bill in 2013. A gift by check also counts for 2012 as long as it is mailed in December. Gifts given to individuals, whether to friends, family or strangers, are not deductible.
• What You Can Deduct. Taxpayers generally can deduct their cash contributions and the fair market value of most property they donate to a qualified charity. Special rules apply to several types of donated property, including clothing or household items, cars and boats.
• Keep Records of All Donations. Americans need to keep a record of any donations they deduct, regardless of the amount. They must have a written record of all cash contributions to claim a deduction. This may include a cancelled check, bank or credit card statement or payroll deduction record. They can also ask the charity for a written statement that shows the charity’s name, contribution date and amount.
• Gather Records in a Safe Place. As long as people have gathered those records for their charitable contributions, it’s a good time to start rounding up documents they will need to file their tax return in 2013. This includes receipts, canceled checks and other documents that support income or deductions people will claim on their tax return. People should be sure to store them in a safe place so they can easily access them later when they file a tax return.
• Plan Ahead for Major Purchases. For those who are making major purchases during the holiday season, don’t base them solely on the expectation of receiving a tax refund before the bills arrive. Many factors can impact the timing of a tax refund. The IRS issues most refunds in less than 21 days after receiving a tax return. However, if a tax return requires additional review, it may take longer to receive a refund.

For more information about contributions, check out Publication 526, Charitable Contributions. The booklet is available on IRS.gov or order by mail at 800.TAX.FORM (800.829-3676).