Tips for deducting charitable contributions

The Office of Personnel Management is giving DC area federal employees more time to donate under the Combined Federal Campaign. You have until January 15th. But time is running out for you to get a tax benefit for donations made in 2009.

Certified financial planner Art Stein told FederalNewsRadio everyone should stop and really think about how much to give and when.

Charitable contribution is a worthwhile thing to do, in and of itself, but if you do it in a tax efficient way, then it'll just give you more money to contribute in the future. By tax efficient way, I mean that it makes more sense to give in a year when your income is high than when your income is low.

If you're going to retire next year, for example, Stein says to make the contribution now, before your income drops.

With the extension of the CFC deadline to January 15th, Stein reminds us that in order to qualify for the deduction in the 2009 tax year, the donation must be made before the end of the calendar year. "You can write a check on December 31st," said Stein, "even though it doesn't get cashed until the following year, you're still good."

Other tips from Stein:

• Get a receipt. Having a cancelled check is important.
• If you're gifting used clothing or tools or the like, and it's worth more than $500, you'll need to get it appraised.
• If you donate a car, "it can't be a complete piece of junk car. It has to have some value."

According to the IRS's Ten Tips for Deducting Charitable Contributions, "If you claim a deduction of more than $500 for all contributed property, you must attach IRS Form 8283, Noncash Charitable Contributions, to your return."