Latest Financial News

Gifts to Charity: Six Facts About Written Acknowledgements

Throughout the year, many taxpayers contribute money or gifts to qualified organizations eligible to receive tax-deductible charitable contributions. Taxpayers who plan to claim a charitable deduction on their tax return must do two things:

  • Have a bank record or written communication from a charity for any monetary contributions.
  • Get a written acknowledgment from the charity for any single donation of $250 or more.

Here are six things for taxpayers to remember about these donations and written acknowledgements:

  • Taxpayers who make single donations of $250 or more to a charity must have one of the following:
    • A separate acknowledgment from the organization for each donation of $250 or more.
    • One acknowledgment from the organization listing the amount and date of each contribution of $250 or more.
  • The $250 threshold doesn’t mean a taxpayer adds up separate contributions of less than $250 throughout the year.
    • For example, if someone gave a $25 offering to their church each week, they don’t need an acknowledgement from the church, even though their contributions for the year are more than $250.
  • Contributions made by payroll deduction are treated as separate contributions for each pay period.
  • If a taxpayer makes a payment that is partly for goods and services, their deductible contribution is the amount of the payment that is more than the value of those goods and services.
  • A taxpayer must get the acknowledgement on or before the earlier of these two dates:
    • The date they file their return for the year in which they make the contribution.
    • The due date, including extensions, for filing the return.

If the acknowledgment doesn't show the date of the contribution, the taxpayers must also have a bank record or receipt that does show the date.

 

This article is courtesy of the IRS. Tax Tip 2017-59

Bratz Thompson Falls and Kalispell CPA Team Picture
 

Quick Contact

Thompson Falls Bratz CPA Location

Get Directions
Email Us

Thompson Falls
Call Today: (406) 827-3277
Fax: (406) 827-3292
Monday - Thursday: 8am - 5pm

303 Main Street
PO Box 505
Thompson Falls, MT 59873

Phone: (406) 827-3292

© Copyright 2019 Bratzcpa.com, all rights reserved.

Thompson Falls, MT