Tuesday, April 20, 2010

WFMW — Tax Tip for Charitable Deductions

My tip today is to help you start getting ready for next year's taxes. You know, because an organized accountant can never start too soon.

I use TurboTax, but you don't have to use it to use one of their newer charitible deduction tools. You'll just have to print out the information you've entered on your own. If you use TurboTax it will automatically import it when you prepare your taxes.

First go to the main page of TurboTax. At the bottom of the page under Tax Calculators and Tools, choose ItsDeductible, or just click directly on this link.

If you've used TurboTax before, you can sign in on the right, and if not, you can start for free. It will keep track of the deductions you enter throughout the year and again, import them into TurboTax, assuming you use it next year. Remember, even if you don't use TurboTax, you could still compile your information there. The best part is that it assigns a value to your items based on the condition you enter, so you don't have to try and guess how much your donation is worth.

One tip — when you are entering items and before you go to a new page, hit 'Add Items' at the bottom because it doesn't remember them as you are popping around to different pages. I initially made the mistake of thinking that I was adding all my items for one donation on different pages and then I should hit add items, but you need to click it before you leave each page. You can still go back to it later.

ItsDeductible is the most helpful for me with the items that I take to Salvation Army or a place like that, but you can also keep track of money, stock, and mileage donations.

If you don't itemize on your tax return and take the standard deduction, then you don't need to keep track of your donations anyway. I should also put a disclaimer that anything I put in this post is not intended as tax advice. I'm just sharing what works for me!

Visit We Are THAT Family for Works-For-Me-Wednesday.

7 comments:

Mari said...

I use Turbo tax too, but haven't tried it's deductible. I just keep a folder with all those little slips of paper. I'll have to check it out.

Sherry said...

Oh, cooL! I'm going to have to try that out. I know I donate a lot of things to our local DAV (Disabled American Vets) thrift store, but I don't ever know how to price it for deductions so I just don't even try. Does this do it for you or?

Have a great day!
Sherry

Kayren, Pink Daisy Girl said...

Sherry,
That's the greatest part...you put your items in by condition and then it values them for you. I never knew what to price them either.

Smart Money Mom said...

Love Turbo Tax and It's Deductible! Great tip!

Nikki said...

Oh my goodness your blog is adorable!!!

And this is a great tip. We use it too!

Lora said...

We love, love, love TurboTax!!

Ronnica said...

And as a tax preparer, I'll share the link to Salvation Army's valuation for those who don't use the software:

http://www.salvationarmyusa.org/usn/www_usn_2.nsf/vw-dynamic-index/d477340ffa28755c8525743d0049d1ef?opendocument

 
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