Give Now to Charity & Get a 2004 Tax Break

A new tax law allows you to donate cash now and take the deduction on last year's taxes. According to CBS MarketWatch, you can make a cash donation to charity by the end of January and take a deduction for the contribution on your 2004 tax return. The IRS has also confirmed the new tax law. According to the IRS, "donors who itemize are allowed to claim on their 2004 tax returns charitable donations made during Jan. 2005 for the relief of the tsunami victims." Here's some tips.... A new tax law allows you to donate cash now and take the deduction on last year's taxes. According to CBS MarketWatch, you can make a cash donation to charity by the end of January and take a deduction for the contribution on your 2004 tax return. The IRS has also confirmed the new tax law. According to the IRS, "donors who itemize are allowed to claim on their 2004 tax returns charitable donations made during Jan. 2005 for the relief of the tsunami victims."

Here are some tips for maximizing your tax benefit:

1. Give cash, not cars or other property. The law only applies to cash donations.
2. The charity must be providing aid to the victims of the South Asia tsunamis.
3. Get a receipt for your cash contribution. Keep the receipt with your tax records.
4. Donate no later than January 31, 2005.
5. Remember that you took your deduction in 2004. Don't double count your donation for both your 2004 and 2005 taxes.