Every year I hope and expect to get a large tax refund when March comes around. We usually use our refund for a much needed home improvement or a fun, family vacation. I do my best all year to keep track of paperwork, receipts, medical premiums and bills, and of course, my charitable donations. 

I used to save all of my household items and clothes that I wanted to get rid of until the spring and then have a huge garage sale, but year after year, I realized that I do not make that much money and in fact probably lose money if I figure all of the time and energy it took to prepare and host a garage sale. Selling clothes for $0.50 or $1.00 doesn't bring in the big bucks!

So, I decided to gather all of my household items and clothes that my children had outgrown and my husband and I had not worn in a while and donate them to a local charity. Several years later, I am on just about every list of donors in our area - which is fine with me. I get at least one call every month asking if I have anything to donate even if it is only one bag of items. Well, I can usually come up with a bag of stuff to give away. I know if an item has not been used in a while by me, then there is someone out there who can make use of it. I figure that my things just sitting in the closets or storage boxes will help someone in need. 

Here is how I keep track of everything I give away so that when it comes time to work on my taxes, I have everything I need to maximize my charitable donations and increase my tax refund.

Charitable Donation Tip #1: Keep a large garbage bag or box accessible to put things in throughout the month. If you wait until it is time to clean out, you will be overwhelmed and possibly never gather items to donate. I am amazed at how many people throw good, usable items in the trash because they didn’t want to deal with it. Some charities will send you a bag periodically to use for your donations.

Charitable Donation Tip #2: Keep track of the specific items you donate. I promise you that when tax time comes around, you will not remember the specific items that you donated – at least not everything! As I am gathering items in a trash bag, I get a piece of notebook paper and write down everything I put in there. You will even need to say if it is for a man, woman, boy, girl so, be sure to make note of that too. Then keep the paper in the top of the bag until it is full and when you get the receipt from the charity just staple them together and place in your already prepared file. See tip #3.

Charitable Donation Tip #3: Keep a file labeled Charitable Donations Tax Year ______. This will help you to keep everything together instead of possibly getting misplaced. The charity organization will give you a receipt, but if you want to benefit from your donation, you will need to keep track of every single item that you donate.

Charitable Donation Tip #4: ItsDeductible is a fantastic program to keep track of your donations throughout the year. I use the TurboTax Deluxe version to do my taxes and ItsDeductible comes free with it. In fact, if you file using TurboTax, it is easiest to use ItsDeductible because once charitable donation items are entered, the information transfers right to your tax return. You can even log in any time throughout the year, enter the items you donate, and when tax time comes, you are done with this aspect of your deductions. You can pay a fee to use the ItsDeductible program if you do not get it free from TurboTax.

Charitable Donation Tip #5: Make sure your name is on a local charity’s list of donors. Donating one time usually gets you on the list and they will call you, but if you would like to choose a specific charity, then just do some research. Search the charities in your town or city. There are also national charities that may have locations in your area such as Vietnam Veterans of America, Goodwill, or Salvation Army.

Charitable Donation Tip #6: Find out if they pick up or if you will have to drop off the items at a specific location. This is good to know especially if you cannot drive, list heavy items, or have little children. I find that I make larger donations more frequently when I schedule a pickup. I just have to place the labeled bags of items on my porch or driveway the night before and find the receipt tucked in my front door handle when they pick up the donation.

Any household items such as linens, home decor, tools, pictures, kitchen items; as well as toys, books, and clothing are tax deductible when donated. So, get cleaning out and give away everything that has been collecting dust. Just remember to keep good records for your taxes.