Donations of $250 or More

You have to obtain a written acknowledgement from the charity to take a deduction on your tax return for donations of $250 or more. A cancelled check is not enough. This is an easy area for the IRS to audit so get those letters from the charities. A lot of charities will give you a yearly summary of all of your contributions which is very helpful.

Donating Stock to Charities

It is usually a good idea to donate stock that has gone up in value to charities. You get to deduct the value of the stock on the day you make the donation and you don't have to recognize any capital gain. How do you determine the value of the stock? The IRS rule states that you use the average of the high and the low price for the stock on the day of the donation which you can look up on the internet or ask your broker.

The Chronically Ill and Taxes

You are defined Chronically Ill by IRS standards if you can't do two of the six normal daily tasks of eating, bathing, dressing, toileting, transferring, and continence without substantial assistance. Bathing and dressing are the two that usually apply first it seems. You are also chronically ill if you have Alzheimer's disease or similar dementia. If you are so classified, then all expenses including room, board, and personal care are deductible as  medical expenses. With nursing home and assisted living costs so high, you can quickly exceed the 7.5% of adjusted gross income threshold for medical expenses so you can get a benefit for the deduction. A licensed health care provider needs to certify your condition.