What Is the Maximum Deduction Allowed Without Receipts for Donated Items?

by Mark Kennan, Demand Media
    Donations to qualified charities reduce your income taxes.

    Donations to qualified charities reduce your income taxes.

    Charitable giving is good for your tax return as well as your heart. Though you usually need a receipt, in certain circumstances you can still claim a deduction without one. However, if you don't have the proper documentation, you'll find yourself in hot water if your return gets audited.

    Property Donations

    As a general rule, you need to get a receipt to claim a deduction for your donated goods. However, no receipt is required for donations valued at less than $250 when it is impractical to get one. For example, if you leave a donation of clothing valued at $100 at a charity's drop box, you can claim a deduction even without a receipt. However, if you dropped clothing off at the charity itself and were just in a hurry, you can't claim the deduction for the donation.

    Other Records to Keep

    If you do drop off your donation where it's impractical to get a receipt, you still need to keep your own records to document the donation. Write down the name of the organization you donated to, the date and location of the donation, and a description of what you donated. You also need to write down the fair market value of the donated items as well as how you figured the value, how much you paid for the items, and the amount you are claiming as a deduction.

    Monetary Donations

    If you make a monetary donation of less than $250, you can prove your donation with a bank record or payroll deduction record if you don't have a receipt. The $250 limit applies to the amount of each contribution. For example, if you donate $100 every week to your temple using a chack, you can prove the deduction with canceled checks. However, if you make just one $300 cash donation, you can't claim the donation as a deduction without a receipt.

    Out-of-Pocket Expenses

    If you pay expenses out of your own pocket for the charity, you can include those contributions as part of your deduction. You always have to have records to prove these expenses, but if your expenses are under $250, you don't need a receipt. Your records have to be made at the time you incur the expense. For example, if you want to write off mileage driven for a charity, you can't wait until the end of the year and guess at your mileage. Instead, you must keep records of the miles as you drive them.

    About the Author

    Mark Kennan is a writer based in the Kansas City area, specializing in personal finance and business topics. He has been writing since 2009 and has been published by "Quicken," "TurboTax," and "The Motley Fool."

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