Gifts to Charity: Six Facts About Written Acknowledgements
Have you contributed money or made gifts to charitable organizations this year? Make sure you have your records in order to claim a charitable deduction on your tax return if you will be itemizing your deductions. You’ll need two things:
- A bank record or written communication from a charity for any monetary contributions.
- A written acknowledgment from the charity for any single donation of $250 or more.
Here are six things from the IRS website for you to remember about these donations and written acknowledgements:
1. If you make single donations of $250 or more to a charity you must have one of the following:
- A separate acknowledgment from the organization for each donation of $250 or more; OR
- One acknowledgment from the organization listing the amount and date of each contribution of $250 or more.
2. The $250 threshold doesn’t mean you add up separate contributions of less than $250 throughout the year.
- For example, if you give a $25 offering to your church each week, you don’t need an acknowledgement from the church, even though your contributions for the year are more than $250.
3. Contributions made by payroll deduction are treated as separate contributions for each pay period.
4. If you make a payment that is partly for goods and services, your deductible contribution is the amount of the payment that is more than the value of those goods and services.
5. You must get the acknowledgement on or before the earlier of these two dates:
- The date you file your return for the year in which you make the contribution.
- The due date, including extensions, for filing the return.
6. If the acknowledgment doesn't show the date of the contribution, you must also have a bank record or receipt that does show the date.
Tax season is just around the corner! Start getting your records in order now to save yourself time and stress later. Call us today if you need tax planning or tax return preparation services.