Givers, you can receive, too.
Deductions for cash and property donations to tax-exempt charitable organizations are the government’s way of saying thank you for having a heart. However, don’t think donating that worn, smelly pair of LA Gears sitting in your closet since 1987 to your local Goodwill will do the trick. All clothing and household items must be in “good used condition”—if a resale shop can sell it, donate it with the confidence that you’ll be properly compensated. Remember to use checks or credit cards when donating a cash donation of $250 or more to ensure the proper documentation now required is obtained.

What you should know.
Not all of the benefits will apply to you, so be wary of the following:

•    You will need to have your receipts from 2006 to justify your reported deductions; don’t send them to the IRS with your return—simply keep them on record in case you get audited. Didn’t save your ’06 receipts? Well, you can’t cash in this year, but keep reading to be better prepared for filing in ’07.

 

The key to winning when it comes to taxes is maximizing the amount you keep, but don’t beat yourself up if after all this you end up owing. Proper tax-saving tips delivers immediate benefits and saves you the expense and stress of harsh penalties and audits that occur without it. Keep that in mind and you will always be a winner.

H&R Block, Inc. is a leading provider of tax, financial, mortgage, accounting and business consulting services and products. H&R Block is the world's largest tax services provider, having prepared more than 400 million tax returns since 1955. For more information, visit www.hrblock.com and www.taxcut.com. Photos © iStock/Chad McDermott, Amanda Rohde, Ron Hoenhaus, Lee Pettet, istockphoto.