“ If my wife goes to the store and gets like 50 bottles of soda (which she does) for about 5 cents a bottle, can we give them to charity and still deduct the fmv of the soda. Lets say it cost $3 per bottle. So if i donated 40 bottles, could i have a $120 charitable deduction?”--->I guess it depends; as you can see, donations to charity are tax deductible expenses as part of itemized dedcutions on 1040 Sch A. These donations can reduce your taxable income, as itemized deductions,as below the line deductions and lower your tax bill. Not everyone will be able to deduct their charitable contributions, however. Your gift of cash or property must meet certain criteria in order to be tax-deductible. You must contribute to a qualified tax-exempt organization. Charities will let you know if they have received their 501(c)(3) tax-exempt status. Some organizations are not required to obtain 501(c)(3) status from the IRS. These include churches and other religious organizations. Contributions of property (other than cash) are subject to strict record keeping and substantiation rules; You must make an assessment of the fair market value of the property you contribute.