Tax deductions are reductions of taxable income and lowering what is generally owned in taxes to the government. Based on Internal Revenue regulations, by making charitable donations, you may be entitled to these exemptions. In order to establish eligibility, you will need to itemize you donations, which will be reviewed and subsequently approved.

IRS Form 1040, Schedule A is used to list various contributions, both monetary and property, to charity organizations.

Varying and strict conditions will determine the tax-exempt status of donations. Without meeting these minimum regulations, your claim will not be approved.

Pledges are not eligible. In order to make a claims on gifts, they must have occurred already. You will need to prove that you have already donated or paid the gift.

Also, you are only eligible for an exemption if making a donation to a qualified organization. The organization must be a registered 501(c)(3) non-profit organization. This means that the Internal Revenue Service has recognized their status as a not-for-profit organization, which includes various types of groups.

In order to claim your donation, you will need to itemize what you have given. If you cannot itemize your donations, you will not be eligible for exemption.

Lastly, in order to make appropriate claims, you will need to be sure to follow strict record keeping rules set out by the government. These apply to various documentation of your contributions including but not limited to receipts, acknowledgment letters, checks and property appraisals. Be sure to check regulations to ensure you have kept sufficient record of what you have given.

While you can claim various charitable gifts you have given, there are some limits on both itemized deductions as well as specific charitable contributions. For the most part, you can deduct cash contributions up to fifty percent of your adjusted gross income. In the same light, you can also typically deduct property contributions up to thirty percent while deduction of appreciated capital gains assets can be made up to twenty percent. Oftentimes, contributions above these limits can be carried over to next year, with a maximum of five years being the norm.

There are several donations that are not considered tax deductible. These include volunteer time for a nonprofit organization, as well as fines or penalties paid to the government. Contributions to for-profit organizations or foreign governments or fees and dues paid to memberships are also ineligible. Lastly, donations to political parties and campaigns, labor unions and business associations, and individuals are not deductible.

It is best to check with a representative from the Internal Revenue Service if you are unsure about how to file your taxes or what is eligible for exemption.