I often buy things for my church and just pay for them out of my pocket -- things like ink for the church printer, food for church dinners, flowers for the altar and stamps to mail announcements to members. Until this year, I have kept receipts for all these things, along with notes as to what the purpose was. Do the new rules for 2007 mean I can no longer deduct these expenses?
You still can deduct those out-of-pocket expenses, and you're wise to do so. Many people forget to keep track of those unreimbursed costs and miss out on some tax deductions that can add up.
It's a good idea to keep two types of records. "Along with your receipts and notes, you should also request a written acknowledgment of the donations from your church, including the date and amount of the contributions," says Mildred Carter, senior tax analyst with tax publisher CCH. It isn't too late to get this paperwork, even if you've already made the contributions. You just need the acknowledgement before the date you file your tax return, says Carter.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
By the way, the new tax law you refer to applies to cash donations. In the past, you could keep track of small cash donations on your own, but now you need a bank record or written communication from the charity listing the amount of the contribution, the date it was made, and the name of the charity -- even if the contribution is small.
For more information about the tax rules for charitable gifts, see IRS Publication 526 Charitable Contributions.
-
It’s Not Too Late to Boost Retirement Savings for 2018retirement Some retirement accounts will accept contributions for 2018 up until the April tax deadline.
-
How to Correct a Mistake on Your RMDs from IRAsretirement If you didn't take out the correct required minimum distribution because your brokerage firm made a mistake, the IRS may show some leniency.
-
Ways to Spend Your Flexible Spending Account Money by March 15 Deadline
spending Many workers will be hitting the drugstore in the next few days to use up leftover flexible spending account money from 2018 so they don’t lose it.
-
Making the Most of a Health Savings Account Once You Turn Age 65
Making Your Money Last You’ll face a stiff penalty and taxes if you tap your health savings account for non-medical expenses before the age of 65. After that, the rules change.
-
Reporting Charitable IRA Distributions on Tax Returns Can Be Confusing
IRAs Taxpayers need to be careful when reporting charitable gifts from their IRA on their tax returns, or they may end up overpaying Uncle Sam.
-
When You Can Expect to Receive Your Tax Refund
taxes The quickest way to receive your tax refund is to file electronically and have the money directly deposited into your bank account.
-
How a Move Can Change Your 529 Plan Tax Deduction
529 Plans The tax deduction you get for contributing to your state’s 529 plan can disappear if you move to another state.
-
Tap an IRA Tax-Free With an HSA Rollover
IRAs You can convert tax-deferred money in a traditional IRA into tax-free cash by rolling it over to a health savings account and using it to pay for medical bills.
