Sunday, January 26, 2014

Tax incentives for organ donations / I’m going to donate a kidney to charity. Can I claim a charitable deduction?

Business Management Daily writes: Question. I’m going to donate a kidney to charity. Can I claim a charitable deduction? Anonymous


Answer. No. Currently, the federal government doesn’t offer any tax deduction or credit for donating organs such as kidneys to charity. However, some states offer tax incentives for making organ donations, including Arkansas, Georgia, Idaho, Iowa, Louisiana, Maryland, Massachusetts, Minnesota, Mississippi, New Mexico, North Dakota, Ohio, Oklahoma, South Carolina, Utah, Virginia and Wisconsin. Typically, the deduction tops out at $10,000. At the national average state income tax rate of 6.5%, this can amount to a $650 savings.
Tip: The expenses incurred in making the donation are eligible for the medical deduction subject to the usual limits.

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