A method for identifying a contact with a touch panel includes: performing a first measuring process for obtaining a baseline signal; performing a second measuring process for obtaining a contact signal if there are any contacts or approaches of the touch panel with objects; comparing the values of the baseline signal with the contact signal for generating the contact signal with a location information; performing a third measuring process for installing an exclusion area according to the baseline signal; determining whether the location information is in the exclusion area; and, discarding the location information if the location information is in the exclusion area.