Income Taxes

• You must file income tax forms annually if you earn income in the United States. Income includes your salary as well as money received from other sources, including interest and dividend payments, gains from investments and winnings from gambling or lotteries.
  
  

Income Deductions

• You can reduce the overall amount of income on which you have to pay taxes by taking legitimate income deductions. These include deductions for expenses such as mortgage interest payments, personal business expenses and a portion of medical expenses.
  
  

Deductions for Charitable Contributions

• You can also deduct contributions to qualified charitable and non-profit organizations, including many religious organizations, non-profit schools and hospitals and groups like the Red Cross and United Way.
  
  

Contribution to Non-U.S. Charities

• In general, charities outside the United States are not qualified as tax-deductible organizations. You cannot deduct such contributions on your income taxes.
  
  

Exceptions for Non-U.S. Charities

• The United States has treaties with Mexico, Canada and Israel that allow some charities in those countries to receive tax-deductible donations from U.S. taxpayers. You can only use income earned in the treaty countries to make donations to charities in that country. For instance, if you are part owner of a company in Mexico that accounts for $10,000 of your income, you can contribute a portion of that $10,000 to qualified charities in Mexico and take a tax deduction.
  
  The IRS recommends you write directly to its International Office for details of treaty-related charitable deductions if you intend to take advantage of these provisions. The IRS will then provide details of qualified organizations.
  
  Write to:
  
  Internal Revenue Service
  
  International Section
  
  P.O. Box 920
  
  Bensalem, PA 19020-8518