Did you know that donations to reputable charities like Goodwill can help reduce your taxes?

To claim your deductions, there are a few things you need to keep in mind:

• You must donate something that has a cash value.  Money, books and clothes that are gently used, the TV you no longer watch, even your outdated kitchen sink– all of these things can be donated to a local charity! If you donate used property, it must be in good condition.  IRS Publication 526 outlines all of the criteria for charitable donations.
• If you donate ANY amount of cash — or property that is valued at $250 or higher — you must have a record of the contribution that includes the name of the charity, date of the contribution, and valued amount of the contribution.  IRS Publication 561can help you determine fair market value for your donated property.
• Make sure the charity you are donating to has 501(c)(3) tax-exempt status.  The Goodwill Community Foundation and GCFLearnFree.org both meet this criteria, as do most religious and non-profit educational organizations.  The online version of IRS Publication 78 can help you locate charities that meet this criteria.
• Charitable contributions are deductible only if you itemize the deductions using Form 1040, Schedule A (PDF).

All of this may seem confusing, but there are several organizations that can help you.

• Volunteer Income Tax Assistance Program (VITA) sites will prepare your taxes if your annual income is $42,000 or below.  Some VITA locations will even file electronically for you.  To locate the nearest VITA site, call 1-800-829-1040.
• The Tax Counseling for the Elderly (TCE) Program provides free tax help to people over 60.  For more information on TCE call 1-800-829-1040. To locate the nearest AARP Tax-Aide site, call 1-888-227-7669 or visit the AARP-TaxAide site.
• The Armed Forces Tax Council (AFTC) offers free tax preparation assistance for US military personnel and their families at offices within their installations.