Q. WHY SHOULD I SUBSCRIBE to CharityDeductions.com?
A. Three reasons: money, time and convenience. Money, because if you itemize your deductions when you file your taxes, using our fair market donation valuations should either get you a larger refund or require you to pay less in taxes. Time, because we’ve done the work for you: instead of researching each donation’s value, our Online Auction Data instantly provides you with the correct fair market value. And convenience, because our software automatically organizes and records your donations’ value into clear, concise reports.
Q. HOW MUCH WILL I SAVE by using CharityDeductions.com?
A. There are a few key factors that will determine your savings: how many items you donate, the value of each donated item, and your tax bracket. Because we are confident that your savings will more than pay for your subscription, we encourage you to take advantage of our free trial offer to see the value of your donations. Despite changes to federal tax laws, most state tax laws remain unchanged. You can still save monty and itemize your state tax return even if you take the standard deduction on your federal return.
Q. WHAT SPECIFIC ITEMS does your website list values for, and how are they determined?
A. Our donation valuation website has thousands of categories with over 100,000 individual values. Each donation value is determined by an algorithm based on thousands of completed successful online auctions. We use that massive amount of data to provide you with a fair market donated value for almost every single item you can find.
Q. WHAT IF I DON’T ITEMIZE, but use the standard deduction when I file my taxes?
A. If you only use the standard deduction when you file your tax return, you will not be able to increase your charitable deductions with our website. (Many of our customers have told us that they actually stopped taking the standard deduction each year and started itemizing their taxes solely because, after using our free trial software, they realized how much money they could save by itemizing and claiming fair market values for the charitable items they donate each year.) Additionally, even if you take the standard deduction on your federal return now due to tax law changes, you can still itemize on your state tax return as most state tax laws remain unchanged.
Q. HOW MUCH does the annual subscription cost?
A. Annual subscriptions are $29.95 per tax year. Start now with a free trial.
Q. DOES THE IRS ACCEPT or sanction your valuations?
A. Although our website is not endorsed by the IRS, it does comply with IRS valuation guidelines. What this means is that our charitable donation valuations use IRS approved guidelines on how to determine the fair market value of a donated item. In each of the rare cases when our customers’ tax returns were audited, the IRS accepted our donation valuations.
Q. WHAT HAPPENS if I’m audited by the IRS?
A. If any of our paying customers are audited by the Internal Revenue Service, we will provide the following support:
First, we recommend that you contact a professional familiar with the IRS audit procedure.
Second, if you request, we will provide a written statement to the IRS auditor on your behalf. The statement will detail our valuation methodology and cite the source data for our item values. (Note that, obviously, we cannot prove what condition the donated item was in, what it cost you, the quantity of items, or if you actually made the donation. Those particulars would be your responsibility to support and prove.)
Third, by using our website before you donate, you have the opportunity to use our "Donation List Receipt" report that provides proof that you donated the items. (Again, we cannot verify the condition, quantity or original cost of items you donate; that remains your responsibility to support.)
Finally, IRS publications 526 & 561 are available for download on the "tax forms" section of our website after you sign in. You can also get these publications at the irs.gov website. These publications address how to determine fair market values, and our valuations meet those IRS guidelines.
Our audit support is not provided to Free Trial members. If audit support is desired, the Free Trial member would bear all legal and research costs.
Q. HOW IS MY PERSONAL INFORMATION used or shared by
Q. ARE THERE LIMITS to the amount I can deduct on my tax return?
A. Yes, (and specific questions should be directed to your accountant/tax preparer to determine your limits.) Our website is normally useful and beneficial to individuals who make charitable donations valued between $500 and $5,000.
Q. IF I DONATE MORE THAN $500, do I need to fill out additional IRS forms?
A. Yes. If you have non-cash donations valued at a total of more than $500, you must file IRS Form 8283 with your tax return. (For your convenience, we provide instructions and a fill-in version of form 8283 on our website, along with other useful IRS forms and publications.)
Q. WHAT IF I HAVE MORE THAN $5,000 in donations for a single tax year?
A. IRS Publication 561 provides information regarding claims over $5,000 for a noncash charitable contribution of one item or a group of similar items. Generally, you must obtain and submit a qualified written appraisal of the donated property from a qualified appraiser. Our website would not qualify as this required appraisal.
Q. WHAT KINDS OF RECORDS do I need to claim charitable deductions?
A. A donor may not claim a deduction for any contribution of cash, a check, or other monetary gift made on or after Jan. 1, 2007, unless the donor maintains a record of the contribution in the form of either a bank record (such as a cancelled check) or a written communication from the charity (such as a receipt or a letter) showing the name of the charity, the date of the contribution, and the amount of the contribution. See the irs.gov website for more information.