Reporting charitable donations is usually worthwhile if you itemize deductions and your total itemized expenses exceed the standard deduction for your filing status. Properly documented non cash contributions reported on Form 8283 can significantly reduce taxable income and generate tax savings, especially for higher income donors and for appreciated property. The benefit equals your marginal tax rate multiplied by the allowed deduction amount, so a 1,000 dollar deduction for a taxpayer in a 24 percent bracket generally saves about 240 dollars in federal income tax. However, if your total deductions such as mortgage interest, state and local taxes within applicable caps, medical expenses above thresholds, and charitable gifts do not exceed the standard deduction, claiming charitable deductions produces no additional tax benefit. Careful comparison of both methods each year is important.
