Charitable Giving Can Turn Out to Be Taxing

To claim a contribution of $250 or more in cash, you need a "thank you" note from the charity, and it has to say that "no goods or services were received in exchange for your contribution." If it doesn't, call the organization and ask for it. Otherwise your tax preparer will, and that just wastes time.

For noncash donations, you need a receipt from the organization noting the date and description of the property donated. Of course, if you just dropped off a bag of old clothes at an unattended Salvation Army bin, you most likely won't get a receipt. Then just keep good records. Be sure to document when and where you dropped the goods, what you donated, the fair-market value and the original cost.

For donated items worth more than $500, see Form 8283 -- Noncash Charitable Contributions for more details.

And when tallying your charitable contributions, do not overlook contributions you made through your payroll deductions, such as those to the United Way. Check your W-2 for that information.

So go ahead, be charitable. Just be organized and prepared as well, so the IRS doesn't give you a headache.