Monday September 23, 2019
Preparing for Filing Your 2018 Tax Returns
As the year 2018 draws to a close, you may want to begin planning and preparing to file your income tax return. While the return is not due until April 15, 2019, you will start receiving tax information forms in January. One recommended practice is to create a filing system so you have all the necessary information to complete your tax return.
The following categories, tax documents and personal information should be considered when creating your filing system.
There are specific requirements for gifts valued at $250 or more. The charity must send you a receipt stating the amount of your gift. Normally, the receipt indicates that the charity provided no goods or services to the donor. You must receive the receipt prior to filing your tax return.
If you make charitable gifts through payroll deductions, you must have a written record. Generally, you must retain a pay stub or Form W-2 that describes the amount withheld by the employer for the charitable gift and a pledge card or other document prepared by the charitable donee organizations. The pledge card or other document must also state that the charitable organization does not provide goods or services in whole or partial consideration for the contribution.
A volunteer may deduct expenses that are directly related to his or her volunteer work for a charitable organization. For this purpose, the volunteer must maintain records of the expenditures. In addition, the charity should send the volunteer a statement that describes the volunteer's activities and indicates whether any goods or services were transferred by the charity to the volunteer in exchange for his or her efforts.
Published December 28, 2018