Deduct Wedding Expenses From Taxes

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Source : http://blogs.hrblock.com/2013/07/10/you-are-cordially-invited-to-deduct-these-wedding-expenses/

 

 

It’s wedding season again and with the average cost of a wedding hovering just below $30,000, wouldn’t it be nice to save a little money on your tax return? No, you won’t be able to deduct the cost of your ring! The good news though is that with a bit of planning, not only may you be able to defray wedding costs by saving money on your taxes, but you can also support charitable causes and organizations you care about.

Ceremony

Many couples choose to make a donation to their church, synagogue or other group on top of any fees charged for the ceremony or use of a reception hall. If this is the case, you can deduct the donation you make as an itemized charitable deduction. Just remember, any fees that you are charged as well as amounts or tips paid to individuals—such as the organist or officiant—are not tax deductible.

Decorations

Did your future mother-in-law demand you buy ugly table centerpieces? Did the wedding planner screw up and order the wrong color of tablecloths? Consider making donations of unwanted wedding decorations or other items to charitable organizations such as Goodwill or the Salvation Army. You can take a charitable deduction up to the fair market value of the property you contribute when you file your return if you itemize your deductions.

Extra Food

When it comes to deciding how much food to have at a reception, it’s better to have too much food than not enough. If you over-estimate how much food your guests will eat, you may be able to donate the leftovers and take a charitable deduction for your contribution. Local soup kitchens and homeless shelters sometimes accept prepared food and may even offer to come pick it up for you. Just make sure you talk to your caterer and the organization you plan on donating the food to ahead of time to work out the details.

The Dress

If your wedding gown is just going to collect dust in your closet, donate it to a charity such as Brides Against Breast Cancer. They will sell the gown and then use the proceeds to provide free programs and services to those affected by cancer. If you go this route, you may deduct the dress’s fair market value as a charitable donation if you itemize your deductions. Just remember, a used wedding gown’s fair market value will almost always be less than what you originally paid. Ask the charity to provide you with a receipt and estimate of the gown’s value.

If your bridesmaids aren’t crazy about their dresses or don’t plan on wearing them again, encourage them to donate their dresses to an organization like Becca’s Closet. They provide prom dresses to underprivileged teens who are unable to pay for the costs of attending prom themselves. Remember though, this is a tax deduction for your bridesmaids, not you!

Wedding Favors

Instead of spending hours on Pinterest deciding what wedding favors to hand out, consider making charitable donations on behalf of guests. For instance, if you and your spouse-to-be have a soft spot for animals, you could make a donation to your local humane society chapter. At the reception, instead of getting monogrammed matchstick boxes, each guest could receive a card indicating that a donation had been made on their behalf. Not only are you providing monetary help, but you are also helping spread awareness of an important cause.

Don’t Forget!

The IRS requires you to substantiate your donations with receipts and other records including the name of the charity, the date of the contribution, and the amount or description of property given away. Additional rules apply for both cash and noncash donations of $250 or more. Finally, be aware that the IRS has special criteria for deductions taken for food donations. If you have questions about what documentation you need to have or whether you can take a charitable deduction at all, check out IRS Publication 526 or contact your tax professional.