John M. Hoffman & Associates CPAs

Frequently Asked Tax Questions

Charitable Contributions

"What do I need for documents, receipts and evidence to claim my charitable contributions made by check or cash?"

The first thing we suggest is not to make charitable donations with cash. For example, if you are a weekly churchgoer, bring a check with you. Claiming $1,040 for 52 weekly donations of $20 in cash to your church would likely raise a question.

The rules are different for donations under and over $250:

When considering whether something is over the limit, do not combine separate contributions so the $1,040 to church described above is not a donation over $250.

• For donations over $250:

You need a written acknowledgement from the charity. This is essentially the "thank you" letter that states that you did not receive any goods or services in return for your donation. We highly suggest that you insist on getting these letters and that you keep them with your tax records.

• For donations under $250:

You need either:

1. A cancelled check, a bank transfer advice (for wired funds), or a credit card statement evidencing the donation.

2. A receipt or letter from the organization (many churches use weekly envelopes and provide a letter at year end - this is a good example of such letter).

3. Other reliable written records - not quite sure what the IRS is getting at with this - we suggest you use a check!

For payroll deductions (things like the United Way), your year end pay stub will suffice.