Tax Savings = Value of Donated Car x Your Tax rate

So if your car is worth $1000 and your tax rate is 30%, you will save $300 on your taxes.

Keep in mind that you must itemize your deductions in order to gain a tax benefit. Make sure that when itemized, your total deductions are greater than your standard deduction. If they're not, stick with the standard deduction. For 2008, the basic standard deductions are:

• Head of household - $8,000
• Married taxpayers filing jointly and qualifying widow(er)s - $10,900
• Married taxpayers filing separately - $5,450
• Single - $5,450

*Your standard deduction may be increased if you are age 65 or older or blind.

Author: Bei M.

Are you tired of using your old car but can’t seem to find the time to replace it? We all know that buying a new car doesn’t take a lot of time but it is getting rid of the old car that does. If you opt to sell your old car, this would mean taking time off from work to refurbish your car, advertise, entertain possible buyers and do the necessary paperwork. Fortunately, you can avoid all these with charitable car donations.

Through charitable car donations, you are guaranteed a fast and convenient way to dispose your old car. Charitable car donations are executed by simply transferring or donating your car to a car donations services who act as intermediaries for charitable institutions who are involved in specific or varied causes. The causes that these institutions may support are: helping disabled people, homeless individuals, cancer patients, or battered individuals. So, charitable car donations not only provide you with a fast and convenient option of getting rid of an old car but a way of helping the needy as well.

Moreover, the federal government rewards you for your charitable car donations with tax deductions. According to the federal tax legislation governing car donations, the gross sales amount or the fair market value is an allowable deduction to tax payable.

If you want to get rid of your old car through charitable car donations but don’t know how, here are the steps that you should take.

1. Prepare the car’s title. Car donations services only accept cars with titles. So when you decide to donate your old car to charitable car donations, make sure you have your car’s title on hand.

2. Search for a reputable car donations services. The whole process of donating your car is convenient and fast, and so is looking for a car donations services. You can do this at the comfort of your own home by surfing online. However, do not just choose the first car donations services that you come across. Always look for a 501(c) (3) charity organization classification. This is to ensure that the legal personality of the car donations services. If you still doubt the car donations service’s 501(c) (3) classification claim, you may also verify with the IRS Tax Exempt and Government Entities Department.

3. Call the toll-free number and fill out the application form. Online car donations services have toll-free numbers that you can call. Some information, such as the paperwork and car pick-up process, may not be available on the website and you may want to verify this. Aside from the phone call, car donations services may require you to fill-out an application form. This will not be a hassle for you since this application form is available online and submitting entails clicking the submit button.

4. Wait for the car pick-up. The car donations services lives up to their convenience and speedy feature with immediate car pick-ups, which is usually within 24 to 48 hours. When your car is picked up, it is important to ask for a document acknowledging the receipt of your car. This document however, may not be the document required for your tax deduction.

5. Wait for your tax deduction paper requirements. To claim your tax deductions, you will be required to submit an acknowledgment receipt containing the details of your charitable car donations. Car donations services prepare this paperwork but may take a maximum of 30 days. After picking up your car, the car donations services may need time to refurbish or fix the car.

About the Author:

If you want give your car for charity then visit at United Society Donations that offer best charitable car donations program. Car Donations are eligible for fair market value tax deductions under the new tax laws when donated to programs such as that offered by United Society. Vehicle donations to charity at United Society "Motor Vehicle Donations Program".

Article Source: ArticlesBase.com - Five Easy Steps to Charitable Car Donations

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