2011 taxes are already in the books for most people. It is possible you simply forgot about taxes, were busy, or perhaps did not have the money to pay what you owed. If you have not filed yet, do not panic. If you have the capability, you want to go ahead and do your 2011 taxes as soon as possible.
If you are still not ready, contact the IRS and request an extension for taxes 2011. Depending on your circumstances, the IRS may not penalize you. If you are getting a refund, you should not be penalized at all for your late filing.
The best way to make the filing process go smoothly is to have all your tax information on hand. This can includes receipts, your total income, possible business expenses, and your taxes from last year.
2011 taxes can seem pretty daunting. If you are having trouble figuring out everything yourself, it can often be beneficial to use a program like Turbotax. This can help guide you step by step and show you the math and some of the deductions for taxes 2011 that you should make. Filing sooner means you will get your refund faster, or prevent late fees and interest piling up on money you owe.
Charitable contributions made to qualified organizations through the year may help reduce your tax bill. Many organizations give donors pertinent details about their tax-deductible donation including the amount that can actually be reported on your tax return. The following tips may help ensure donation made will be beneficial on your taxes.
- Make sure you report charitable contributions on the correct form. The IRS states that form 1040 must be used to itemize deductions using Schedule A.
- Upon reporting the deduction, make sure it was made to a qualifying charitable organization. Contributions reported shouldn’t be donations made to individual or political organizations.
- There are rules to review if your contribution included a vehicle. Clothing and other goods should be fair market value and in good condition in order for it to deductible.
- Items received for making a contribution such as ball game tickets or services; deduct the amount that exceeds fair market value.
- When reporting cash contributions, make sure you have proper documentation that proves the amount. This may include bank statements, a correspondence from the organization or even paystubs if donations were made via payroll deduction. A phone bill will suffice for text donations as long as it states the name of the organization, date of donation and the amount given.
- Donations of $250 or more must have proper documentation such as a bank record or written notice from the qualifying organization. You may need to report if you were given anything in exchange such as any gifts or services. Noncash donations of $500 or more should be reported on IRS Form 8283 (Noncash Charitable Contributions) and attached to your tax return.
- If you donation was an item that valued over $5,000 an appraisal is required. Obtain an appraisal from a qualified appraiser and report data on the IRS Form 8283 section B.
Additional details can be reviewed in the IRS Publication 526: Charitable Contributions. Information regarding property value can be review in IRS Publication 561: Determining the Value of Donated Property. It is important to report contributions to the best of your knowledge with honesty. The IRS may question donations made and contact you for proof. If you are found to have provided false information on your federal income tax return, you may face penalties. Contact a tax professional with questions or concerns about charitable contributions made.
Andrew writes frequently about personal finance as well as issues effecting both consumers and small businesses, covering everything from credit cards to mortgages to how to setup an umbrella company.