Regardless of whether you itemize charitable donation deductions on Schedule A, claim an above the line allowable deduction for qualifying donations of $300 (Single) or $600 (married filing jointly) or deduct donations made through your IRA, ALL deductions for charitable donations are required to be supported by receipts or other substantiating documentation.<\/p>\n
There is no IRS “allowable amount”, and any deductions taken on your tax return that cannot be substantiated with a receipt or other documentation will not only be disallowed on audit, the disallowed amount may be subject to a variety of penalties (including substantial accuracy penalties both taxpayer and tax preparer penalties for intentional understatement of income.<\/p>\n
This is now a very hot item on the IRS agenda and with all the money given away or spent by Washington these past two years, I wouldn’t be surprised to learn that the IRS computer will now automatically mail charitable contribution documentation requests to everyone who claims a charitable contribution deduction.<\/p>\n
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