The TurboTax deluxe edition tax deduction finder platform can be enhanced with several other TurboTax tools that relate to particular areas of expenses you may incur during the year. The TurboTax ItsDeductible Tax Calculator can help you discover more tax deductions that can lower your overall taxable income.
Track charitable donations and contributions on-the-go and on your time with the TurboTax Mobile App.
Deducting Charitable Donations
TurboTax ItsDeductible™ is a free, easy to use TurboTax Tax Tool that can be used online, or downloaded as a Smartphone App,
Use it to turn charitable donations into big tax deduction savings on your tax return.
- Add donations any time online or with the mobile Smartphone app
- Easily import to TurboTax Tax Software
For additional questions, TurboTax offers a secondary option with the AnswersXchange TurboTax online support.
How TurboTax ItsDeductible™ Works For You!
TurboTax ItsDeductible Features:
- Tracks donations year round
- Securely add donations, mileage, cash, bonds, and mutual funds
- Offers accurate values for your donated items
- Get actual resale values based on style and condition of item.
- Helps reduce your risk of an audit
- lets you know what the IRS allows as deductions
- Provides fast answers to donation questions
The TurboTax ItsDeductible Application works hand in hand with TurboTax Deluxe Edition and higher since lower editions do not support Schedule A which is needed for claiming charitable donation deductions on your tax return.
5 simple steps to import your charitable donation data from ItsDeductible into TurboTax Deluxe Software or higher
- Tap the take me to my return button in TurboTax
- Search for donations using the search box
- In the search results, click the “Jump to” link for donations
- Choose Yes where you see did you make donations to charity?
- Follow the remaining instructions to import your donations
How to determine the fair market value of your donations
TurboTax ItsDeductible Determines fair market values by gathering selling price information from auction websites like eBay along with thrift stores and resale outlets throughout the U.S.
Information is collected every day from hundreds of thousands of completed eBay auctions in order to determine accurate valuations for items that are not normally found in consignment, and thrift shops.
This method of electronic and manual price-collection helps create a comprehensive, up-to-date database of values that comply with IRS guidelines. The IRS has defined fair market value as the sale price between a willing buyer and willing seller, where both have relevant knowledge of the item but neither is required to buy or sell.
Valuations from non-profit stores like the Salvation Army and Goodwill are only used to supplement data gathered from consignment and specialty stores since non-profits represent bargain pricing for lower income shoppers and typically understate true market value.
Who Can I Make Charitable Donations To?
It's important to note that only donations to qualified charities are potentially deductible. This generally means 501(c)3 organizations though many religious organizations and government agencies may qualify as well.
What Type of Donations Are Deductible?
Deductible donations can include money and physical objects like clothes, household items, vehicles and more. Physical items must be in at least “good” condition to qualify.
What Proof Should I Have For Charitable Contributions And Donations?
You normally should receive documentation for every donation you make. All cash and physical donations above $250 are require to have a receipt to be credited as deductible.