Money Saving Tips

3 Tax Benefits for New York Veterans

Current and former members of the military are eligible for certain tax exemptions.

“These exemptions and credits are one small way we can show our gratitude to the brave and dedicated individuals who currently serve or have served in our military,” said Acting Commissioner of Taxation and Finance Nonie Manion in a 2017 press release.

Photo by Benjamin Faust on Unsplash

Photo by Benjamin Faust on Unsplash

In today’s post, we’ll examine a handful of the exemptions available for New York veterans.

Property Tax 

As many as half a million New York veterans benefit from property tax exemptions, many of which are offered by local governments.

Depending on the circumstance, the property tax burden of a wartime veteran could be up to 15% or even as high as 25% if the veteran serves in a combat zone.  Cold War veterans (between 1945 and 1991) could see up to 15% in exemptions.

If the veteran was disabled in the line of duty, they could see up to 50% off in exemptions.

How do these property tax exemptions work?

In September 2017, Gov. Cuomo signed a bill that allowed the 679 school districts the option to allow exemptions for Cold War veterans for the entirety of the time the veteran owns the property. Prior, it was 10 years.

To find out which of these exemptions applies to you, you’ll need to contact your local assessor’s office. Visit NYS’s Municipal Profiles website to get the contact information you need.

Military Pay  

If your permanent home was in NYS before you entered the military, you don’t have to pay income tax on your active-duty pay. But it isn’t quite that simple.

You have to meet ALL three of the following conditions:

  • Didn’t have a permanent home in NY

  • Maintained a permanent abode outside of NY (this excludes military quarters like barracks, BOQ, etc.)

  • Spent less than 30 days in New York during the year

Basically, you need have not lived in New York almost at all for the entirety of the year to be eligible for this perk. You also had to be living somewhere off-base/ship to not owe income taxes.

Hire a Veteran Credit 

There are two types of hire a veteran credit. They are:

  • Corporations subject to franchise tax

  • Individuals, estates and trusts under personal income tax laws

This credit applies if you or your business:

  • Hires a qualified veteran before January 1, 2020

  • Employees the qualified veteran for 35 hours

If the veteran is disabled, the credit is 15% of the total wages paid during the first full year of employment. That amount can’t exceed $15,000 per veteran.

If the veteran isn’t disabled, the credit is10%  of the total wages paid during the first full year of employment. For nondisabled veterans, the credit is capped at $5,000.

These are just a handful of the tax benefits, credits, and exemptions that veterans can take advantage of. Reach out to one of our tax professionals and we’ll ensure you’re getting the most tax benefits from your service.

 

6 FAQs About 529 College Savings Plans

College is a large expense and one worth planning for, especially if you want your future college graduate to start their lives with minimal debt. One common way to prepare for such an expense is to open a 529 college savings plan.

Photo by Ruijia Wang on Unsplash

Photo by Ruijia Wang on Unsplash

What is a 529 plan?

College savings 529 plans are state-sponsored savings accounts that offer both tax and financial aid benefits.

What states run a 529 program?  

Almost every state has a 529 program, each with different perks and benefits. You can pick based on perks and you don’t need to live in the state you opened the account in.

You can look at 529 plan options using this tool from SavingforCollege.com.

What are the two types of college 529 plans?

There are two types of 529 plans, they are:

  • College savings plans – This plan is similar to a Roth 401k or Roth IRA by allowing you to contribute after-tax income in the form of mutual funds and other types of investments. There are a number of investment options to choose from and the 529 account will go up and down and value according to those investment choices. The money is this account is available for tuition, books, and often housing.

  • College prepaid tuition-  This plan can be used to pre-pay all or part of the costs of an in-state public college education. Sometimes, they can be converted for use at private or out-of-state colleges.

What are the perks of using a 529 savings plan?

Each state provides slightly different incentives for its 529 programs. But some of the overall benefits include:

  • Large income tax breaks (for federal and often state taxes)

  • The donor stays in control of the account until its use

  • They’re low maintenance

When can you start them?

You can start one of these savings plans at any time. Most 529 programs are “set it and forget it” meaning the investments come straight out of your paycheck or bank account.

Where can I learn more about college 529 plans?

There are a lot of online resources for comparing and ranking different 529 programs. You can reference one of these, or reach out to your friendly neighborhood tax professionals. We can help you select the best option for you.

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3 Essential Tips for Financial Planning When You Have a Disability

Having a disability is not quite as rare as many people think. In fact, about 14 percent of adults around the world have a disability of some kind. This includes people who have a physical, mental, intellectual, or sensory limitation at a mild, severe, or moderate level. Also, these disabilities could have happened at birth, in old age, or anywhere in between.

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One thing that remains consistent across all forms of disability, however, is that life generally costs more money for those who have them. Normal expenses such as medical care and food, as well as additional costs such as modified housing and assistive devices and technology, can put a major burden on those with disabilities. That’s why it’s essential to have a financial plan in place. If you have a disability, these three tips will help you prepare and form the financial skills it takes to live your best life, both now and in the future.

Consider Life Insurance

One of the first things you should do when planning your finances is to look into life insurance. If you get a policy that benefits your current situation, it could provide significantly for your family if you were to pass away unexpectedly. And life insurance can help cover things like medical expenses, funeral expenses, and lost income. Moreover, shopping for life insurance is fairly straightforward nowadays, as you can easily purchase it online and use online calculators to figure out the coverage you need.

Set a Budget

Much of your financial planning comes down to making a budget. Not only will your budget serve as a guideline for your spending and saving, the process of making a budget will teach you a lot about your financial situation and the steps you can take to grow. If you’re on a fixed income, start with how much you bring in each month. If you are able to work or already have a job, where does that put your monthly income?

Once you factor in your income, write down all of your expenses; include everything you can think of. This might include normal monthly expenses such as your mortgage payment, home and auto insurance, utilities, food, entertainment, gas, etc. Also, consider your medical expenses: How much do you spend on medical care, assistive devices, or any other medical-related expenses? Furthermore, include any credit card debt you want to pay off.

Once you get these basic costs on paper, see where you stand concerning your income and expenses. Then you can determine what you can cut (entertainment, miscellaneous items, etc,) if necessary. Also, be sure to research all your options when it comes to financial assistance.

Build an Emergency Fund

As it is with anyone, saving money is important when you have a disability. Once you figure out your budget, determine how much you can put away in savings. Building an emergency fund will create a safety net in the event that something unexpected happens — whether it’s a medical incident, major home or car repair, or any other kind of sudden expense. Decide on a set amount to put into a cash jar or savings account, and stick to it as close as you can.

There may be many expenses that come with a disability, but that doesn’t mean you can’t navigate them and make a plan that meets your needs and sets you up to be cared for later in life. Work through your finances and set a budget to guide you through your spending and saving. Find the best life insurance plan for you and your family, and start building an emergency fund today. Being financially prepared will help you overcome a lot of challenges and put you in a better position to live a fulfilling life.

 Written by Ed Carter

4 Ways to Pay Less Taxes on Your Investments

If you’re considering jumping into investing (or have already started), you need to know the tactics to avoid paying massive amounts of taxes on them. We’ve compiled a list of tax tips for investors. Check them out.

by Austin Distel

Hold investments for longer than a year

Whenever you make money off your investments (aka capital gains) you are taxed on that income. However, the length of time you held the investment dictates the rate you’ll be taxed at.

These taxes, called capital gains taxes, change at the year mark. If you hold your investments for a year or less, you’ll be taxed at the short term capital gains rate, which is the same rate as income tax.

But if you hold your investments for a year and a day, you’ll get taxed at a more manageable long-term capital gains rate.

This rate can get as high as 20% for big earners, but it’s more likely you’ll pay somewhere between 0 and 15%.

Buy Municipal Bonds  

Buying bonds means you get to collect interest on those bonds, which is a great source of passive income if you buy enough.

But unless you buy municipal bonds, the IRS is entitled to a share of that interest. When you buy either city, state, or county bonds, you are exempt from paying federal income tax on those bonds. If you buy municipal bonds in your home state, you’ll be exempt from state and local taxes as well.

One thing to note is that if you sell your municipal bonds for a profit, you’ll have to pay taxes on the gain.

Sell Losing Investments   

If you’re losing money on a particular investment, you might want to consider selling it off.  Investment losses offset capital gains, so if you make $2,000 and lose the same amount, you won’t have to pay on the amount you’ve lost.

In addition, if your investment losses exceed your gains, you can use them to offset up to $3,000 in taxable income.

Put Your Money in Tax Sheltered Accounts  

Putting your investment money into tax-sheltered accounts is a great way to defer paying taxes on various investments.

Accounts like 401(k)s, 403(b)s, and certain IRA plans aren’t tax-free, but you won’t have to worry about paying taxes until you start making withdrawals. By the time you do that (barring some emergency), you’ll likely be in a lower tax bracket anyway.

 

Have more questions about investments and taxes? Shoot us an email or give us a call.

The new card skimming is called ‘shimming’

Westchester NY accountant Paul Herman of Herman & Company CPA’s is here for all your financial needs. Please contact us if you have questions, and to receive your free personal finance consultation!

By Bankrate

Card Shimming

Remember the card skimming wave, in which fraudsters attach false fronts to outdoor ATM and gas pump point-of-sale terminals to harvest the details off your card’s magnetic stripe and clone your card?

The bad guys are back with a new, improved data pickpocketing technique called shimming, in which they secretly insert a shimmer, a paper-thin, card-size shim containing an embedded microchip and flash storage into the “dip and wait” card slot itself, where it resides unseen to intercept data off your credit or debit card’s EMV chip. Although the scammers can’t use that purloined chip data to clone an actual chip card (for reasons we’ll discuss shortly), they can clone a mag stripe version that’s fully capable of defrauding banks and merchants who may not be paying close attention to their card security protocols.

What makes shimmers potentially more effective that skimmers? They can easily be inserted into indoor, in-store POS terminals, where they record the data being shared between the card’s chip and the terminal. What’s more, when the scammers periodically collect the shim to harvest its bounty, they appear to be doing nothing more than paying at the terminal.

Both scams gained momentum domestically as the United States ramped up for what has turned out to be a slow, rocky and ongoing transition from mag stripe to chip cards, contributing to a record 15.4 million victims of U.S. identity fraud in 2016.

Shimming: An invisible, yet still-rare, hack

Shimmers made their debut two years ago in Mexico and Arizona. The most recent North American case turned up in January in the Vancouver, British Columbia, suburb of Coquitlam. But it wasn’t a ripped-off consumer who blew the whistle, according to the Royal Canadian Mounted Police (RCMP).

How to protect yourself from shimmers

  1. Use the contactless tap-and-go feature on your credit or debit card instead of swiping or inserting your card.
  2. Use contactless mobile services such as Apple Pay or Samsung Pay to tap and pay.
  3. If you’re withdrawing cash at a bank, go inside to a teller.
  4. Use ATMs in banks rather than more vulnerable standalones.
  5. Cover the keypad with your hand when entering your PIN.
  6. Don’t proceed with a transaction if your card encounters resistance when it is inserted.
  7. Contact the bank, merchant and your card issuer is you suspect your card has been compromised.

“This retailer was doing daily checks to make sure everything was working properly on their four POS machines, and during one of those checks, they noticed that the test card they use wasn’t going in and out smoothly,” explains RCMP Cpl. Michael McLaughlin. “So they took the machine apart and found this shimmer inside. It’s a really good illustration of how a basic, low-tech technique can defeat high-tech crime.”

McLaughlin says that short of experiencing similar difficulty when inserting a card, there’s little to warn consumers that a card reader may contain a shim. “Unless you can really get a good look inside that little slot where your card goes, you’re probably not going to see a shimmer from the outside,” he says.

While the threat is invisible, it’s not as dire as it may seem.

“We don’t want people to panic over something like this,” cautions McLaughlin. “We’ve only found the one instance in our jurisdiction, it’s a brand-new technology and isn’t particularly widespread. You’re much more likely to get your wallet stolen.”

What happened to my “safer” chip card?

But wait — aren’t chip cards supposed to be more secure than those mag stripe relics?

Yes — and, ironically, shimming helps illustrate why, according to Nick Billett, senior director of global research and development for Diebold Nixdorf, a global banking and retail solutions company.

The reason: Each EMV chip card issued has two sets of digital card validation codes: a CVC for the magnetic stripe and a different, integrated CVC (or iCVC) for the EMV chip. Card issuers keep both codes on file, as well as a secret dynamic code unique to that chip, to verify the authenticity of every card transaction.

As a result, it’s impossible to clone a chip card. While skimmers and shimmers can create a cobbled-together mag stripe clone, it won’t buy them anything with merchants and banks that are following standard card security protocols. And those noncompliant operators who aren’t watching the store are fast diminishing as U.S. cardholders trade in their mag stripes for chips.

“The EMV mechanism is such that you can authenticate that that card is real and that it hasn’t been tampered with. Taking the data from a shimmed card doesn’t get you that data,” Billett explains. “If you look at the reports from Europe based on when EMV was introduced, going back 10 years now, their cure for redemption fraud in skimming is way, way down and dropped pretty much consistent with the EMV rollout. So hopefully we can get there very soon.”

The only U.S. terminals that would be fooled by a shimmed card are fast disappearing, according to Mastercard spokeswoman Beth Kitchener. In fact, Mastercard’s EMV partner Visa estimates that counterfeit fraud has declined by 50 percent at chip-enabled merchants, according to Visa vice president of risk and authentication products Stephanie Ericksen.

Because cards that have been cloned through shimming must rely on their mag stripe and not a chip to commit fraud, “shimmed cards can only be used in in-store retail environments that have not upgraded to EMV chip technology,” Kitchener notes.

Can tap-and-go save the day?

OK, so maybe the odds are very slim that your card will ever be shimmed and cloned. What steps can you take to mitigate even that remote risk?

In addition to closely monitoring your account for unauthorized purchases and setting text and email alerts and maximum ATM withdrawal limits on your cards, you may want to explore a tap-and-go contactless card or mobile pay apps such as Apple Pay or Samsung Pay rather than dip your chip.

“Tap-and-go or contactless cards would also help eliminate skimming or shimming,” explains Kitchener. That’s because each tap-and-go transaction uses limited banking information that prevents it from being used for fraud.

It was easy for Canada’s RCMP to recommend that consumers switch to tap-and-go, given that 95 percent of the cards up north support contactless payments and 8 out of 10 Canadian retailers have terminals with Near Field Communication (NFC) capability — a wireless technology that allows data to be exchanged between two different devices, such as a cellphone and a credit card terminal, from a short distance away.

Contactless payment forms are “actually very secure,” the RCMP’s McLaughlin explained. “Each tap transfers very limited banking information, which can’t be used to clone your card.”

Contactless cards are still the exception rather than the rule in the U.S., due in part to the rocky rollout of EMV and the reluctance of many banks and merchants to pay extra for terminals with an NFC antenna.

They are, however, expected to flood the U.S. soon. Contactless card shipments, which numbered 25.5 million in 2015, are expected to balloon to 405 million in 2021, according to a study released in November 2016 by ABI Research.

Whether you dip or tap, in the rare case you fall victim to a “shimmer,” rest assured: Both Visa and Mastercard have got your back.

“Cardholders should try their best to protect themselves from fraud. If this isn’t possible, they are protected by zero liability, which ensures they are never held responsible for fraudulent purchases,” Kitchener says.


Paul S. Herman CPA, a tax expert for individuals and businesses, is the founder of Herman & Company, CPA’s PC in White Plains, New York.  He provides guidance and strategies to improve clients’ financial well-being.

Social Security and Medicare Amounts for 2015

Westchester NY accountant Paul Herman of Herman & Company CPA’s is here for all your financial needs. Please contact us if you have questions, and to receive your free personal finance consultation! 

The annual inflation adjustments have also impacted the various Social Security amounts and thresholds for 2015.

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The Social Security wage base, for computing the Social Security tax (OASDI only), increases to $118,500 in 2015, up from $117,000 for 2014. There is no taxable earnings limit for Medicare (HI only) contributions. However, there is a 0.9% Medicare surtax that is imposed on wages and self-employment (SE) income in excess of the modified adjusted gross income (MAGI) threshold amounts of $250,000 for joint filers, $125,000 for married separate filers, and $200,000 for all other taxpayers. The MAGI thresholds are not adjusted for inflation. The surtax does not apply to the employer portion of the tax.

For Social Security beneficiaries under the full retirement age, the annual exempt amount increases to $15,720 in 2015, up from $15,480 in 2014. These beneficiaries will be subject to a $1 reduction in benefits for each $2 they earn in excess of $15,720 in 2015. However, in the year beneficiaries reach their full retirement age (FRA), earnings above a different annual exemption amount ($41,880 in 2015, up from $41,400 in 2014) are subject to $1 reduction in benefits for each $3 earned over this exempt amount. Social Security benefits are not reduced by earned income beginning with the month the beneficiary reaches FRA. But remember, Social Security benefits received may be subject to federal income tax.

The Social Security Administration estimates the average retired worker will receive $1,328 monthly in 2015. The average monthly benefit for an aged couple where both are receiving monthly benefits is $2,176. These amounts reflect a 1.7% cost of living adjustment (COLA). The maximum 2015 Social Security benefit for a worker retiring at FRA is $2,663 per month, up from $2,642 in 2014.

Herman and Company CPA’s proudly serves Bedford Hills NY, Chappaqua NY, Harrison NY, Scarsdale NY, White Plains NY, Mt. Kisco NY, Pound Ridge NY, Greenwich CT and beyond.

Gift-giving tax rules

Westchester NY accountant Paul Herman of Herman & Company CPA’s is here for all your financial needs. Please contact us if you have questions, and to receive your free personal finance consultation! 

Still looking for a last-minute or belated Holiday gift? Think cash!

Some people shy away from giving money because they think it’s tacky. Others are leery because of possible tax complications.

You’ll have to consult with Miss Manners about the propriety of gifting cash. But I can help allay some of your financial gift giving tax concerns.

People don’t understand monetary gifts, says Dave Du Val, vice president of taxpayer advocacy at Taxaudit.com, largely because in the tax world it’s a nebulous term. Adding to the confusion, adds Du Val, is that there are different requirements for different types of gifts.

However, when it comes to plain old dollar bills (or checks), the Internal Revenue Service rules are pretty straightforward.© staras/Shutterstock.com

This Christmas, you can give up to $14,000 to anyone and neither you nor your gift recipient will face any tax consequences. That amount is adjusted annually for inflation. For 2015 it stays at $14,000.

When you keep your gifts below that amount, you don’t have to report the gift to the Internal Revenue Service and the person who received the money doesn’t have to report it as income.

Breaking the $14,000 gift tax barrier

But what if you want to be even more generous? There are ways to get around the annual gift exclusions amount.

You can give your spouse any amount you wish without worrying about any gift tax as long as your husband or wife is a U.S. citizen.

Your spouse also can help you double the annual exclusion amount, says Du Val. The giving limit applies individually, so a married couple gets a double financial gift option.

You can give your daughter $14,000 and your spouse can give her another $14,000. She banks $28,000 but because the total came from each parent individually, there are no tax issues for generous moms and dads.

Here’s some more good news, especially for potential financial gift recipients. The tax-free giving isn’t limited to family. You can give up to $14,000 to anyone; a friend, a co-worker, any person you wish.

And in a couple of cases, you can exceed the annual gift exclusion limit entirely. This is the case, says Du Val, when your gift covers qualified educational or medical expenses. Just be sure, he notes, to pay the college or hospital directly.

Right about now, you might be wondering why you should think about financial gifts and taxes since you are far from ultra-rich.

That’s OK. Remember that $14,000 is the most you can give without worrying about taxes. But you don’t have to max out the gift. If you want to give $5,000 or $3,000 or $1,000, that’s fine.

Those relatively smaller amounts are still covered under the tax-free giving rules. At holiday time, that makes Uncle Sam a close cousin of good old Santa Claus.

Source: BankRate

Herman and Company CPA’s proudly serves Bedford Hills NY, Chappaqua NY, Harrison NY, Scarsdale NY, White Plains NY, Mt. Kisco NY, Pound Ridge NY, Greenwich CT and beyond.

New Law Creates Tax-Favored Savings Accounts for Disabled Taxpayers

Westchester NY accountant Paul Herman of Herman & Company CPA’s is here for all your financial needs. Please contact us if you have questions, and to receive your free personal finance consultation! 

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As part of the larger tax extender legislation passed on Tuesday, Congress approved the Achieving a Better Life Experience (ABLE) Act of 2014 (H.R. 647), which will allow disabled individuals to save money to pay for their disability expenses in tax-favored accounts, called ABLE accounts. The House of Representatives passed the measure on Dec. 3, by a vote of 404–17, and it now goes to President Barack Obama for his signature.

The purpose of the bill is “[t]o encourage and assist individuals and families in saving private funds for the purpose of supporting individuals with disabilities to maintain health, independence, and quality of life” and “[t]o provide secure funding for disability-related expenses on behalf of designated beneficiaries with disabilities that will supplement, but not supplant, benefits provided through private insurance,” Medicaid, and other sources (H.R. 647, §101).

The bill adds a new Sec. 529A to the Code, under which a qualified ABLE program will be exempt from taxation (except for unrelated business income tax). A qualified ABLE program is a program run by a state that allows a person to make contributions for a tax year, for the benefit of an eligible individual, to an ABLE account established for the purpose of meeting the qualified disability expenses of the designated beneficiary of the account. A state’s ABLE program must limit designated beneficiaries to one account and must allow accounts to be opened only for residents of that state or a contracting state.

Eligible individuals must file a disability certification with the IRS or meet certain criteria for blindness or disability under the Social Security Act (42 U.S.C. §1382).

Contributions must be made in cash, and the program must limit annual contributions to the amount of the annual gift tax exclusion in effect for that tax year.

The ABLE program must provide separate accounting for each designated beneficiary, and designated beneficiaries and contributors must not be able to direct the investment of contributions or earnings in the account.

Distributions from the account will not be included in the designated beneficiary’s gross income as long as they do not exceed the beneficiary’s qualified disability expenses. If they do exceed the beneficiary’s qualified disability expenses, the amount otherwise includible in gross income will be reduced by an amount bearing the same ratio to that amount as the expenses bear to the distributions.

Funds in ABLE accounts will also be disregarded for purposes of various federal means-tested programs.

Once signed by the president, the bill will take effect for tax years beginning after Dec. 31, 2014

Herman and Company CPA’s proudly serves Bedford Hills NY, Chappaqua NY, Harrison NY, Scarsdale NY, White Plains NY, Mt. Kisco NY, Pound Ridge NY, Greenwich CT and beyond.

Seniors age 70 1/2+: Take your required retirement distribution

Westchester NY accountant Paul Herman of Herman & Company CPA’s is here for all your financial needs. Please contact us if you have questions, and to receive your free personal finance consultation! 

The tax laws generally require individuals with retirement accounts to take annual withdrawals based on the size of their account and their age beginning with the year they reach age 70½. Failure to take a required withdrawal can result in a penalty of 50% of the amount not withdrawn.

If you turned age 70½ in 2014, you can delay your 2014 required distribution to 2015. Think twice before doing so, though, as this will result in two distributions in 2015 — the amount required for 2014 plus the amount required for 2015, which might throw you into a higher tax bracket or trigger the 3.8% net investment income tax. On the other hand, it could be beneficial to take both distributions in 2015 if you expect to be in a substantially lower tax bracket in 2015.

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Herman and Company CPA’s proudly serves Bedford Hills NY, Chappaqua NY, Harrison NY, Scarsdale NY, White Plains NY, Mt. Kisco NY, Pound Ridge NY, Greenwich CT and beyond.

Eight Tips for Deducting Charitable

If you are looking for a tax deduction, giving to charity can be a “win-win” situation. It’s good for them and good for you. Here are eight things you should know about deducting your contributions to charity:DeathtoStock_Creative Community7

1. You must donate to a qualified charity if you want to deduct the contribution. You can’t deduct contributions to individuals, political organizations, or candidates.

2. To deduct your contributions, you must file Form 1040 and itemize deductions.

3. If you get a benefit in return for your contribution, your deduction is limited. You can only deduct the amount of your contribution that’s more than the value of what you received in return. Examples of such benefits include merchandise, meals, tickets to an event, or other goods and services.

4. If you give property instead of cash, the deduction is usually that item’s fair market value. Fair market value is generally the price you would get if you sold the property on the open market.

5. Used clothing and household items generally must be in good condition to be deductible. Special rules apply to vehicle donations.

6. You must file Form 8283, “Noncash Charitable Contributions,” if your deduction for all noncash contributions is more than $500 for the year.

7. You must keep records to prove the amount of the contributions you make during the year. The kind of records you must keep depends on the amount and type of your donation. For example, you must have a written record of any cash you donate, regardless of the amount, to claim a deduction. It can be a canceled check, a letter from the organization, or a bank or payroll statement. It should include the name of the charity, the date, and the amount donated. A cell phone bill meets this requirement for text donations if it shows this same information.

8. To claim a deduction for donated cash or property of $250 or more, you must have a written statement from the organization. It must show the amount of the donation and a description of any property given. It must also say whether the organization provided any goods or services in exchange for the contribution.

Any U.S. tax advice contained in the body of this website is not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.