I think that at 1 point in time (about 10 to 15 years ago?), to deduct charitable contributions, you only needed a canceled check, bank statement, or receipt for single contributions of more than $250.
But from IRS Publication 526 (Charitable Contributions), it's my understanding that now, regardless of the amount, in order to deduct a charitable contribution made to a qualified organization using a bank check, you need 1 of the following:
1. a canceled check
2. a bank statement
3. OR a receipt from the organization
which shows:
1. the name of the organization
2. the date of the contribution
3. AND the amount of the contribution
And that the same record-keeping requirements apply whether it's deducted:
1. with itemized deductions
OR
2. with a standard deduction, using Tax Year 2021 1040, line 12b ("Charitable contributions if you take the standard deduction")
Is that correct?
If the donation is more than $75, the organization must offer you a receipt. But you are now required to have your own separate documentation of all money donations. You can no longer claim, for example, loose cash tossed into the Salvation Army red kettle or the church donation plate. Of course, you would only be required to show the documentation if you are audited, and most taxpayers are not audited.
If the donation is more than $75, the organization must offer you a receipt. But you are now required to have your own separate documentation of all money donations. You can no longer claim, for example, loose cash tossed into the Salvation Army red kettle or the church donation plate. Of course, you would only be required to show the documentation if you are audited, and most taxpayers are not audited.
Thanks for the clarification @Opus 17!
I hadn't realized the distinction that:
1. The organization only needs to offer a receipt if the donation is more than $75
2. But the taxpayer needs documentation for donations of any amount
And something I missed previously is that "A scanned image of both sides of a canceled check obtained from a bank or credit union website" will also suffice as documentation.
Thanks!
I agree that documentation is required for all cash contributions (check or written acknowledgment). for a cash contribution of $250 or more to any one charity on any one day where no goods or services are received the donor must get written acknowledgment. for contributions of more than $75 where goods or services are received, the charity provide written acknowledgment of the deductible amount
Just for clarification: It is my understanding then that:
• If periodic (weekly or monthly) contributions are made to the same qualified organization
• For a written acknowledgment from that organization to be used to substantiate those contributions, it would need to include the date and amount of each individual contribution, not just the year and total amount of the contributions for that year.
Is that correct?
It depends on the amount of the contribution because different amounts have different reporting requirements. Here is a breakdown of the recordkeeping rule the IRS requires.
Please review this IRS publication entitled substantiating charitable contributions for more information on this topic.