When I donated the clothing at the salvation army I got a reciept indicating the date and my name for donation. In the description I put "3 full 13 gallon bags of clothes". When i did my taxes this year I used it's deductable from turbotax (helps you do deductions) and it came to around 450. I put that as clothes deductions. It didn't raise my refund too much (maybee 20 - 30 dollars). However, I was told this will probably raise a red flag because of the amount I put there. Someone told me that 450 is soo much. I have a recipt but it's only stating quantity not individual itmes. The chairty has the carbon copy. Will this be a problem.
2007-02-08 07:03:20 · 8 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
As long as you keep you documentation of the donations with your records you will be ok. This is proof of the deduction and the IRS would request this if it were to raise a flag.
2007-02-08 07:10:40 · answer #1 · answered by Anonymous · 1⤊ 0⤋
I wouldn't worry too much about it being that it only made $20-$30 difference, because the red flag would definatley go up over $500 which would have the donations listed on a seperate form , so if the IRS was to question it, send them a copy of what you have from the charity. If that is not acceptable in the end, you would pay back the $20-$30.
2007-02-08 07:21:44 · answer #2 · answered by kldpeaches 1 · 0⤊ 1⤋
This may or may not raise a red flag...personally $450 dollars does seem a bit high but you have a receipt and that will help if you do run into that. I did hear that the IRS is focusing on chatritable contributions this year...tighting up guidelines *gulp* I believe you can put up to $500 of non cash contributions on the Schedual A without additional paperwork..not saying that the burden of proof is not yours...but chances of an audit over that I would say are slim.
2007-02-08 07:16:11 · answer #3 · answered by valster75 1 · 0⤊ 1⤋
The red flag limit is around $200 or $250. Seems hardly worth the $20-30 to put yourself under scrutiny. I think the new rules for charitable contributions require a receipt with a dollar amount. If the IRS flags this they will disallow it and whack it down to zero.
Tough breaks.
2007-02-08 07:09:07 · answer #4 · answered by Anonymous · 1⤊ 1⤋
Rules for Clothing and Household Items
To be deductible, clothing and household items donated to charity after Aug. 17, 2006, must be in good used condition or better. However, a taxpayer may claim a deduction of more than $500 for any single item, regardless of its condition, if the taxpayer includes a qualified appraisal of the item with the return. Household items include furniture, furnishings, electronics, appliances, and linens.
2007-02-08 07:14:09 · answer #5 · answered by parsonsel 6 · 0⤊ 1⤋
Red Flag clothes go down in price. What were they Bran New to high if you ask me. Not to mention ya the IRS wants to keep it honest thats why they will probably hold your return until they investigate the return. Have fun ..
2007-02-08 07:22:10 · answer #6 · answered by Lorraine S 2 · 0⤊ 1⤋
It is probably higher than reasonable, but it's not enough to be likely to get you audited if there's nothing else out of line on your return. Since it's already done, I'd just leave it alone.
2007-02-08 14:38:06 · answer #7 · answered by Judy 7 · 0⤊ 0⤋
No, just present the receipts that you have. IRS agents don't want to fight over pennies, they are just trying to keep the system honest.
2007-02-08 07:09:34 · answer #8 · answered by whatevit 5 · 1⤊ 1⤋