Christmas signals the end of another year, but also the start of tax time. Charitable contributors it's time to pull-out those receipts. The United way of Acadiana knows contributors need to be prepared.
Lori Petrie is the Chief Financial Officer for United Way of Acadiana. Petrie says a letter of acknowledgment will be given to donor as proof the donation was given. "Anyone that gives towards the United Way we'll give them a letter that says how much their gift was for," explains Petrie.
Payroll contributors look to your W-2. Petrie says remember it's the date of the actual donation that counts, not the date the pledge was made. "You want to keep that receipt from your pledge and compare that to your employer's receipt and they should match," adds Petrie.
Jack koubi is the owner of Champion Tax Service, located in Lafayette. Koubi has been doing taxes for about 11 years. He says the purpose of claiming a charitable donation is to reduce ones tax liability. "So when your tax liability is reduced you're getting back the difference between what you're supposed to owe and what you had paid," says Koubi.
Plus, Koubi says make sure the organization has a charitable identification number. "You can't just give to anybody and expect to have it on your return as a contribution."
Koubi adds that non-charitable contributions can be claimed; but at fair market value. "Clothes, furniture, cars, boats and things that you donate to charitable organizations." Koubi explains IRS Form 8283 is for listing those non-cash contributions given to charities.