Press Information For Immediate Release December 21, 2011				CONTACT: Martha O’Gorman Chief Marketing Officer (800) 790-3863 ext. 8022 martha.ogorman@libtax.com

TIMELY ADVICE FOR CHARITABLE GIVING IN THE FINAL DAYS OF 2011
Liberty Tax Covers How to Get the Greatest Value for Charitable Donations   

(Virginia Beach, VA)  In the spirit of the holiday season and upcoming tax season, many taxpayers choose to give more to their favorite charity before the end of the year, and receive the benefits of increased charitable contributions.  Liberty Tax shares these tips for charitable giving in order to reap the greatest tax benefits.   

IRA Donations to Charity  

This tax year, there’s a unique way to make a charitable contribution through an IRA for those ages 70 ½ and older. Through the end of 2011, these taxpayers can transfer up to $100,000 tax free from an IRA to an IRS approved charity.  

Approved  501 ( c)(3) organizations that are determined by the IRS to be legitimate charity non-profits will be able to provide an authorization letter of its tax exempt status from the IRS. Approved non-profits include those whose focus is religious, charitable, educational, literacy, preventing cruelty to children and animals, or serving military veterans.  Time spend volunteering is not deductible, but volunteers can deduct out-of-pocket expenses and volunteer mileage at 14 cents a mile for 2011 and 2012.  

Get the Greatest Value of Donated Items  

Cleaning out closets and giving household items to a qualified charity before December 31 can add to charitable contributions for the year. When declaring the value of donated clothing or items for tax purposes, determine the fair market value.  This can be the price the item might sell for at a garage sale or thrift store.  IRS Publication 561 Determining the Value of Donated Property is a good source to use.  For monetary donations or items over $250 in a single donation, the IRS requires an additional written acknowledgement from the organization.  Taxpayers claiming over $500 for all contributed property must complete and file Form 8283, Noncash Charitable Contributions.    

Back Up Every Donation With a Written Record 

With items and monetary donations, written documentation is imperative to claim the total amount of all charitable donations. Bank records, cancelled checks or written acknowledgements for all cash contributions that show the name of the charitable organization, the date and the amount of the contribution are important things to save.   

The IRS has tightened documentation requirements for monetary donations to charities, and has imposed stricter standards for the quality of some items donated.  No deduction is allowed for most clothing and household items unless the donated property is in good condition or better.  The rule does not apply to any contribution of a single item for which a deduction of more than $500 is claimed if the taxpayer includes a qualified appraisal with the return. 

About Liberty Tax Service   Liberty Tax Service is the fastest -growing retail tax preparation company in the industry’s history.  Founded in 1997 by CEO John T. Hewitt, a pioneer in the tax industry, Liberty Tax Service has prepared over 9,000,000 individual income tax returns.  With 42 years of tax industry experience, Hewitt stands as the most experienced CEO in the tax preparation business, having also founded Jackson Hewitt Tax Service.                                                                 -30-