One tax deductible expense is making a donation to a charity. However, in order to claim any charitable deduction, one must be able to itemize their tax deductions on Schedule A of the 1040 form.
In order to be tax deductible a charitable contribution must meet certain criteria. First, the contribution has to be actually donated as a pledge or promise to donate is not considered deductible until it is actually paid. The organization to which the contribution is made must have tax exempt status under the regulations of the 501(c)(3) rules.
In addition, certain record keeping requirements must be met. For contributions of cash that are under $250, one needs to have a cancelled check, bank statement or credit card statement that shows the amount that was paid, the date it was paid and the name of the charity to which money was donated. There must also be any written receipts or any other type of acknowledgement from the charity that also shows the date and amount of the contribution and any other records or documentation that provide and confirm the date and amount that was contributed.
For contributions of cash that are over $250, there must be a written acknowledgement from the charity to which the money was donated. The acknowledgement letter from the charity must include the amount of cash that was donated, whether the charity provided any goods or services in exchange for the donation and, if so, a description of those services and a reasonable estimate of the cash value of the goods or services provided by the charity. Donations of over $250 will not be considered tax deductible unless this supporting documentation is provided.