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Taxmap/pub17/p17-129.htm#TXMP08d44fde Chapter 26 Contributions

Contribution

Taxmap/pub17/p17-129.htm#TXMP45ac92ac Reminders

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Disaster relief.

You can deduct contributions earmarked for flood relief, hurricane relief, or other disaster relief to a qualified organization (defined later under Organizations That Qualify To Receive Deductible Contributions). However, you cannot deduct contributions earmarked for relief of a particular individual or family.

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Written acknowledgment required.

You can claim a deduction for a contribution of $250 or more only if you have a written acknowledgment of your contribution from the qualified organization or if you have certain payroll deduction records. For more information, see Records To Keep, later in this chapter.

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Payment partly for goods or services.

A qualified organization must give you a written statement if you make a payment that is more than $75 and is partly a contribution and partly for goods or services. The statement must tell you that you can deduct only the amount of your payment that is more than the value of the goods or services you received. It must also give you a good faith estimate of the value of those goods or services. See Contributions From Which You Benefit, later in this chapter, for more information.

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Limit on itemized deductions.

If your adjusted gross income is more than $142,700 ($71,350 if you are married filing separately), the overall amount of your itemized deductions may be limited. See chapter 31 for more information about this limit.

Introduction

This chapter explains how to claim a deduction for your charitable contributions. It discusses:

• Organizations that are qualified to receive deductible charitable contributions,
• The types of contributions you can deduct,
• How much you can deduct,
• What records to keep, and
• How to report your charitable contributions.

A charitable contribution is a donation or gift to, or for the use of, a qualified organization. It is voluntary and is made without getting, or expecting to get, anything of equal value.

Taxmap/pub17/p17-129.htm#TXMP62a98337 Form 1040 required.

F1040

To deduct a charitable contribution, you must file Form 1040 and itemize deductions on Schedule A. The amount of your deduction may be limited if certain rules and limits explained in this chapter apply to you.

Useful items

You may want to see:

Taxmap/pub17/p17-129.htm#TXMP43b9acbb Organizations That Qualify To Receive Deductible Contributions

Organizations That Qualify To Receive Deductible Contributions

You can deduct your contributions only if you make them to a qualified organization. To become a qualified organization, most organizations other than churches and governments, as described below, must apply to the IRS.

You can ask any organization whether it is a qualified organization, and most will be able to tell you. Or you can check IRS Publication 78, which lists most qualified organizations. You may find Publication 78 in your local library's reference section, or on the internet at www.irs.gov. You can also call the IRS Tax Exempt/Government Entities Customer Service at 1-877-829-5500 to find out if an organization is qualified.

Taxmap/pub17/p17-129.htm#TXMP514046e7 Types of Qualified Organizations

Generally, only the five following types of organizations can be qualified organizations.

1. A community chest, corporation, trust, fund, or foundation organized or created in or under the laws of the United States, any state, the District of Columbia, or any possession of the United States (including Puerto Rico). It must be organized and operated only for one or more of the following purposes.
   1. Religious.
   2. Charitable.
   3. Educational.
   4. Scientific.
   5. Literary.
   6. The prevention of cruelty to children or animals.
   Certain organizations that foster national or international amateur sports competition also qualify.
   
2. War veterans' organizations, including posts, auxiliaries, trusts, or foundations, organized in the United States or any of its possessions.
3. Domestic fraternal societies, orders, and associations operating under the lodge system. Note. Your contribution to this type of organization is deductible only if it is to be used solely for charitable, religious, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals.
   
4. Certain nonprofit cemetery companies or corporations. Note. Your contribution to this type of organization is not deductible if it can be used for the care of a specific lot or mausoleum crypt.
   
5. The United States or any state, the District of Columbia, a U.S. possession (including Puerto Rico), a political subdivision of a state or U.S. possession, or an Indian tribal government or any of its subdivisions that perform substantial government functions. Note. To be deductible, your contribution to this type of organization must be made solely for public purposes.
   

Taxmap/pub17/p17-129.htm#TXMP7d035e28 Examples.

Examples

Qualified organizations include:

• Churches, a convention or association of churches, temples, synagogues, mosques, and other religious organizations.
• Most nonprofit charitable organizations such as the Red Cross and the United Way.
• Most nonprofit educational organizations, including the Boy and Girl Scouts of America, colleges, museums, and day-care centers if substantially all the child care provided is to enable individuals (the parents) to be gainfully employed and the services are available to the general public. However, if your contribution is a substitute for tuition or other enrollment fee, it is not deductible as a charitable contribution, as explained later under Contributions You Cannot Deduct.
• Nonprofit hospitals and medical research organizations.
• Utility company emergency energy programs, if the utility company is an agent for a charitable organization that assists individuals with emergency energy needs.
• Nonprofit volunteer fire companies.
• Public parks and recreation facilities.
• Civil defense organizations.

Taxmap/pub17/p17-129.htm#TXMP328236d3 Certain foreign charitable organizations.

Foreign Charitable Organizations

Under income tax treaties with Canada, Israel, and Mexico, you may be able to deduct contributions to certain Canadian, Israeli, or Mexican charitable organizations. Generally, you must have income from sources in that country. For additional information on the deduction of contributions to Canadian charities, see Publication 597, Information on the United States–Canada Income Tax Treaty. If you need more information on how to figure your contribution to Mexican and Israeli charities, see Publication 526.

Previous Page:  Publication 17 - Your Federal Income Tax - How To Report Next Page:  Publication 17 - Your Federal Income Tax - Contributions You Can Deduct Use     to find additional instances of index items.