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  • Tithing vs. Other Charitable Contributions

    • Any donation which you provide to the church that does not benefit you is tax deductible. If, on the other hand, you purchase a $50.00 ticket to the county fair and proceeds go to the church, you will need to deduct the fair market value of the fair ticket and only claim the portion which is left over. For example, if the cost of the county fair ticket is usually $25.00, then you must deduct this amount from the $50.00 price of the ticket and only claim the remaining amount, $25.00, on your tax return. Do not confuse these types of church fundraisers with tithing.

    Limits

    • Keep in mind that there is a limit on itemized deductions for taxpayers earning more than $166,800. Also, your claimed contributions cannot exceed 50 percent of your income. Contributions over $250 will need to be accompanied by written verifications of contributions from your church. All contributions, even small donations, must be supported by records such as banks statements, canceled checks or money order receipts. Before 2007, taxpayers could use personal notes and ledgers as sufficient records for small tithing donations but the IRS has since changed these guidelines.

    Claiming

    • In order to claim the tithes as charitable contributions, you will need to itemize your tax return. The best and most efficient form for itemizing your taxes is Form 1040. Also, you'll need to report your charitable donations on lines 16 through 19 of Schedule A. Enter all cash tithes on line 16 and all non-cash tithes on line 17 of Schedule A.

      If your tithes exceed $500, you may need to complete the first section of IRS Form 8283. Usually, this form should only be completed if your total noncash tithes were over $500 or if you made a donation which was over $5,000 for one item.



Read more: How Do I Claim Tithes on My Taxes? | eHow.com http://www.ehow.com/way_590299..._.html#ixzz1XwHZOACZ

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