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November 21, 20176 Requirements for Tax-Deductible Charitable Contributions
Throughout the year, many taxpayers contribute money or gifts to qualified organizations. These are often tax-deductible charitable contributions if they meet certain criteria. If you are a taxpayer planning to claim a charitable deduction on your tax return, you must do two things: have a bank record or written communication from a charity for any monetary contributions.
A written acknowledgment from a charity for any single donation of $250 or more is vital for your records.
Written Acknowledgement Requirements for Tax-Deductible Charitable Contributions
Here are six things taxpayers need to remember about donations of $250 or more and the written acknowledgments they receive:
1. The following requirements are necessary for donations of $250 or more:
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- There must be a separate acknowledgment from the organization for each tax-deductible charitable contribution of $250 or more.
- Acknowledgement of each tax-deductible contribution of $250 requires each amount and date listed by the organization.
2. Despite $250 threshold, that does not mean a taxpayer adds up separate contributions of less than $250 throughout the year.
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- For example, if someone gave a $25 offering to their church each week, they don’t need an acknowledgment from the church, even though their contributions for the year are more than $250.
3. Payroll deductions utilized for contributions are separate tax-deductible contributions each pay period.
4. If a payment is partly for goods and services, the taxpayer may only deduct the amount of the payment that was above the value those goods and services.
5. The recognition of the tax-deductible charitable contribution must be acknowledged on or before the earlier of these two dates:
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- The date they file their return for the year in which they make the contribution.
- The due date, including extensions, for filing the return.
