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I am a homeschooling mother and Certified Public Accountant (CPA) combining my experience and knowledge to help homeschool organizations such as co-ops, support groups, music and sports programs. HomeschoolCPA answers questions from homeschool leaders on many topics such as nonprofit status, liability, paying teachers, tax exempt status and taxes.
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4:49 PM, Sep. 29, 2006
Making cash donations? Get a receipt
(view similar articles on Personal Finance and Taxes)
If you make cash donations, get a
receipt! Just drop a $20 in the collection plate? Start
putting it in an envelope with your name or write a check.
Starting this year, you will not be allowed a charitable deduction
unless you have a receipt from the charity (or a cancelled check or a
credit card statement). No more anonymous donations if you want
the tax deduction.
From About Taxes
The Pension Protection Act toughens the tax laws for charitable donations.
Under the new law, taxpayers must keep records of all cash donations.
Individuals must show a receipt from the charity, a canceled check, or
credit card statement to prove their donation. No tax deduction will be
allowed if the taxpayer cannot provide any supporting documentation.
Taxpayers will not need to mail in the receipts with their tax return.
Instead, taxpayers will need to keep receipts and other documentation
with their copy of the return in the event of an IRS audit.
Keep those receipts!
Carol
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I didn't know this but will start writing checks. Thanks for posting this important info.
Posted by berrymorin on Oct. 10, 2006 at 12:13 AM
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