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Level 1
January 18, 2020
Question

Charitable deductions

  • January 18, 2020
  • 1 reply
  • 6 views

A Charity that we donated to for many years (2009-2017) was sued and the settlement required it to refund some of the funds to us. We received a check in 2019 and will receive another in 2020.

 

Since these were donations that we used as tax deductions over the years, upon receiving the check in 2019 we immediately donated the exact same amount to another charity.

 

How do we report this activity on our 2019 tax return?

    1 reply

    ColeenD3
    Level 15
    January 20, 2020

    The reimbursement will be considered miscellaneous income.  It will be included on Line 8 of Schedule 1, 1040. Since you have claimed a deduction for that amount (to the extent you did), it is now taxable income. The donation will deductible as an Itemized Deduction, as any donation usually is.