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Itemized Deductions Schedule-A


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Old 03-26-2014, 05:00 PM
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Audit itemized deduction woes


When my husband retired he was offered a job at a private Christian school affiliated with our parish. When offered a contract, he asked that he only be paid half of the salary and we thought we could use it as a donation to the church. We were audited for 2011 and they denied it as a charitable contribution. I am hoping that we just didn't do the return properly. Please advise!!!



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Old 03-27-2014, 01:14 PM
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Originally Posted by churchlady View Post

When my husband retired he was offered a job at a private Christian school affiliated with our parish. When offered a contract, he asked that he only be paid half of the salary and we thought we could use it as a donation to the church. We were audited for 2011 and they denied it as a charitable contribution. I am hoping that we just didn't do the return properly. Please advise!!!
One way to get a deduction on your taxes is with cash contributions made to charitable organizations and the like. you must be using Federal Tax Form 1040.. If you are going to use Form 1040EZ, for instance, you will not be able to take any deduction; you must also itemize on Sch A of 1040 your deductions instead of taking the standard deduction.You must make cash contributions to qualified organizations. Qualified organizations fall under one of five categories. You need to make a cash contribution in the form of check, cash, credit card, payroll deduction, or electronic funds transfer. You also ned to keep adequate records. You must have a bank record such as a cancelled check or bank statement or a receipt from the organization showing the date, the organization's name, and the amount of the contribution. If your contribution is from a payroll deduction, you have to keep the pay stub or W2 and a pledge card from the organization with its name on it .If your contribution is over $250, you must have acknowledgment from the organization. If you make ten separate cash contributions of $25 over 10 weeks, these count separately as $25 each and do not have to have this acknowledgment. Look on Sch A of 1040 for the section on Gifts to Charity. There should be a line that says Gifts by Cash or Check.You need to report in the total amount of your cash contributions on this line aslongas you itemize deductions on your return as said.



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