Can I Deduct a Cash Donation Without Receipts?
While a good deed might be its own reward, the Internal Revenue Service sweetens the pot with a tax deduction for charitable donations. However, the IRS does not go by the honor system, otherwise people could falsely claim charitable donations. Thus, you always need a receipt for a donation, even something small, such as a church giving plate.
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Identification
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If you make a cash donation, the IRS requires you to keep some record of the donation in all circumstances, according to IRS Publication 526. Accepted records include an actual receipt from the organization, a letter stating the size of your donation, bank records -- like a credit card statement -- or payroll deduction.
Limit
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Even if you have a receipt, your cash donation may not count. The IRS limits total charitable donations to 50 percent of your net income. You can, however, carry over any cash contributions to your next five yearly tax returns. The actual giving limit might be lower depending on the classification of the charity.
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Tip
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The IRS requires a receipt from the organization itself when you make a cash contribution of $250 or more. The receipt must state the exact total of the donation and if you received anything in return for your donation. For donations below $250, the IRS accepts third-party documents, such as a canceled check.
Warning
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Verify the tax-exempt status of any organization to which you donate cash. Also, check with the IRS to ensure that the donation to the organization qualifies as a tax deduction or find its name in Publication 78 (see Resources). You can donate to some charities outside of the U.S., such as those in Mexico and Canada if they meet certain conditions.
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