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 acknowledgement for a single donation of $250 or more
Six things for taxpayers to remember:
- Make single donation of $250 or more must have:
- A separate acknowledgement for each donation of $250 or more
- One acknowledgement listing he amount and date of each contribution of $250 or more
- The $250 threshold doesn’t mean add up separate contributions of less than $250 throughout the year.
- Contributions by payroll deduction are separate contributions each pay period
- If a payment that is partly for goods and services, deductible contribution is the amount of the payment that is more than the value of those goods and services
- Acknowledgement on or before the earlier of these two dates:
- Date they file their return for the year in which they make the contribution
- Due date, including extensions, for filing the return
- If acknowledgment doesn’t show the date of the contribution, must also have a bank record or receipt that does show the date.