Home | Tax Blog | Tax Evaluation | Resources | Common Tax Questions | Back Taxes | Contact Us

Charity Donations and Taxes

August 11th

For many individuals who make large numbers of charitable donations, the number one issue can be losing their tax deduction. However, there is a simple solution: Get the letter.

For taxpayers who make charitable donations of $250 or more, the letter from the organization acknowledging the gift is the most necessary component when seeking a tax deduction. The letter must also include certain information, including that the gift occurred by a specific date, in order for the donation to qualify for a deduction. Claiming a deduction that does not qualify can lead to tax debt or audits

If you want to seek a tax deduction for your charitable donation, ensure that you have a letter from the organization that includes the following:

  • The amount of the gift (the donation must total $250 or more)
  • The date on which the gift was given
  • A statement that “no goods or services” were provided in connection for this gift

The taxpayer must also have the letter in hand at the time they wish to file their tax returns, although the letter may be sent by email. This means that if an individual’s tax returns are filed on March 15, but he does not receive the letter from the organization until April 9, he will not be able to have the deduction.

A Strict Approach

Be warned, the IRS has taken a very literal approach to the laws associated with these deductions. Though Congress has written some provisions in the tax code that would allow some flexibility in certain cases it is, at the end of the day, at the discretion of the IRS.

Since the Internal Revenue Service generally takes a very literal approach to these laws, applicants should be sure to make deadlines and not expect any leniency.

 
 
RSS

Subscribe Now
Social

Follow on FaceBook
News & Events
Monday, August 01, 2011

We are excited to launch our new site LeeTaxHelp.com.
Monday, September 05, 2011

If you think you might be need the advice of a Dallas Bankruptcy Attorney you can view on sister site at http://leebankruptcy.com
Categories
Back Taxes (5) General Tax Information (65) News (39) Payroll Taxes (5) Tax audit (10) Tax Debts (3) Tax deductions (16) Tax Fraud (4) Tax Laws (14) Tax Liens (10) Tax payment plans (14) Tax programs (21) Tax Scams (6) Uncategorized (2)
Recent Posts
Advantages of Using a Tax Debt Lawyer
Tax Debt Relief In 2014
Tax Debt Installment Agreements
Understanding the Five Tax Debt Strategies
Back Taxes: What You Can Do
Archives
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011