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Yes, It’s Early For Taxes!
Earned Income Tax Credit - You earned it. Keep it. Save it.
Start getting your paperwork together for the upcoming
tax season.
- Plan to use a FREE tax site. Call 211
- Collect all needed information:
W-2 forms from all jobs worked in 2012
Child care expenses, provider’s address and federal ID#
Mortgage company statements
Property tax bills
- All other documents: Alimony paid or received, notices from the IRS or state tax office, college tuition and student loan interest statements, scholarships and fellowships, lottery/gambling winnings.
The Earned Income Tax Credit (EITC) benefit is for working (full or part time) families making less than $50,000 a year. But to get EITC and other tax credits for working families, you MUST FILE a 2012 Tax Return.
EITC does not count as income for TANF, Food Stamps, SSI, Medicaid or public housing. Social Security cards are required.
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Help us spread the word about Free Tax Sites and the Earned Income Tax Credit, please Post the Flyers.
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To Volunteer as a Taxpayer – Contact Michelle @ mewilliams@merceralliance.org
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Six Tips for Charitable Taxpayers
Contributing money and property are ways that you can support a charitable
cause, but in order for your donation to be tax-deductible, certain
conditions must be met. Read on for six things the IRS wants taxpayers to
know about deductibility of donations.
1. Tax-exempt status. Contributions must be made to qualified
charitable organizations to be deductible. Ask the charity about its
tax-exempt status, or look for it on IRS.gov in the Exempt Organizations
Select Check, an online search tool that allows users to select an exempt
organization and check certain information about its federal tax status as
well as information about tax forms an organization may file that are
available for public review. This search tool can also be used to find which
charities have had their exempt status automatically revoked.
2. Itemizing. Charitable contributions are deductible only if you
itemize deductions using Form 1040, Schedule A.
3. Fair market value. Cash contributions and the fair market value of
most property you donate to a qualified organization are usually deductible.
Special rules apply to several types of donated property, including cars,
boats, clothing and household items. If you receive something in return for
your donation, such as merchandise, goods, services, admission to a charity
banquet or sporting event only the amount exceeding the fair market value of
the benefit received can be deducted.
4. Records to keep. You should keep good records of any donation you
make, regardless of the amount. All cash contributions must be documented to
be deductible – even donations of small amounts. A cancelled check, bank or
credit card statement, payroll deduction record or a written statement from
the charity that includes the charity’s name, contribution date and amount
usually fulfill this record-keeping requirement.
5. Large donations. All contributions valued at $250 and above
require additional documentation to be deductible. For these, you should
receive a written statement from the charity acknowledging your donation.
The statement should specify the amount of cash donated and/or provide a
description and fair market value of the property donated. It should also
say whether the charity provided any goods or services in exchange for your
donation. If you donate non-cash items valued at $500 or more, you must also
complete a Form 8283, Noncash Charitable Contributions, and attach the form
to your return. If you claim a contribution of noncash property worth more
than $5,000, you typically must obtain a property appraisal and attach it to
your return along with Form 8283.
6. Timing. If you pledge to donate to a qualified charity, keep in
mind that for most taxpayers contributions are only deductible in the tax
year they are actually made. For example, if you pledged $500 in September
but paid the charity just $200 by Dec. 31 of that same year, only $200 of
the pledged amount may qualify as tax-deductible for that tax year.
End-of-year donations by check or credit card usually qualify as
tax-deductible for that tax year, even though you may not pay the credit
card bill or have your bank account debited until after Dec. 31.
Bottom line: your support of a qualified charitable organization may provide
you with a money-saving tax deduction, but conditions do apply. For more
information, see IRS Publication 526, Charitable Contributions, and for
information on determining value, refer to Publication 561, Determining the
Value of Donated Property. These publications are available at
IRS.gov or by calling 800-TAX-FORM
(800-829-3676).
From: IRS Summertime Tax Tip 2012-20, IRS Tax Tips, an IRS e-mail
service. For more information on federal taxes please visit
IRS.gov.
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For More Information
Please Contact: Tarry Truitt, Communications and Project Manager, ttruitt@merceralliance.org or 609-844-1008.
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