Charitable contributions can be a great way to give back to your community and also provide some tax benefits. Let’s explore how you can maximize these deductions. First, if you itemize your deductions, you can deduct contributions made to qualified charitable organizations. This includes donations of cash, property, and even mileage driven for charitable activities. Be sure to keep receipts and records of your donations, as the IRS requires documentation for these deductions. For those who don’t itemize, there’s good news if you’re in Colorado. The state offers a Colorado Subtraction for Charitable Contributions. This allows non-itemizers to subtract charitable contributions above the first $500 from their Colorado taxable income. It’s a great way to benefit from your generosity even if you take the standard deduction on your federal return. Remember, to qualify for these deductions, the charity must be a recognized 501(c)(3) organization. Also, if you receive something in return for your donation, like a dinner or event ticket, you can only deduct the amount that exceeds the fair market value of what you received. Consult your CPA to ensure you’re maximizing your charitable contribution deductions and taking advantage of any state-specific benefits like the Colorado Subtraction.