Substantiating your Charitable Contributions

Many taxpayers made charitable contributions in 2017 ahead of the 2018 law change that limits itemized deductions – and hence charitable deductions.  With tax returns due next week, it is a reminder that taxpayers who claim income tax deductions for charitable contributions must request and obtain the written acknowledgement from the done-charity of the donation by the time the return is due. Failure to have the required substantiation from the charity can void the tax deduction. Below is a sample letter.

Dear Donor:

Thank you for your donation of $_________ to CHARITY during 2017. This letter acknowledges your generous donation. No goods or services were received by you in consideration of this gift. Therefore, the full amount is deductible to the extent allowed by the Internal Revenue Service regulations.