How can I deduct donations to charitable organizations for tax purposes?
March 14, 2023 | 50,00 EUR | answered by Fred Wittik
Dear tax advisor,
my name is Sofia Mellert and I have a question regarding the tax deductibility of donations to charitable organizations. Lately, I have been donating to various charitable organizations and would like to know how I can claim these amounts on my taxes.
I am not sure if I simply need to include the donations in my tax return or if there are specific forms or receipts that I need. So far, I have only received donation receipts from the organizations, which indicate the amount and purpose of the donation.
Furthermore, I am wondering if there is a certain maximum limit up to which I can deduct the donations. I have heard that there are different regulations depending on the type of organization, and I would like to know if this applies to me.
I am concerned that I may be doing something wrong and end up having issues with the tax authorities. Therefore, it would be very helpful if you could explain to me how to correctly report my donations in my tax return and what I need to consider. If there are any special regulations or forms, it would be great if you could also provide me with that information.
Thank you in advance for your assistance!
Sofia Mellert
Dear Mrs. Mellert,
Thank you for your question regarding the tax deductibility of donations to charitable organizations. It is commendable that you are involved in charitable causes and donations. I am happy to explain to you how you can claim these donations on your taxes.
First and foremost, it is important that you carefully keep the donation receipts that you receive from the charitable organizations. These serve as proof for the tax office that you have actually made donations. In your tax return, you can then specify the amounts of the donations. There is a specific form for this, the "special expenses" attachment, in which you can enter your donations.
There is indeed a maximum limit for donations that are tax deductible. This is usually 20% of the total amount of income you have earned in a year. However, there are also exceptions and special regulations for certain types of organizations. For example, donations to religious or charitable organizations may be deductible up to 40% of income in some cases. It is therefore advisable to inform yourself exactly which organizations fall under which regulations.
To avoid problems with the tax office, it is important that you document all donations properly and keep the corresponding evidence ready. If the tax office has any questions about your donations, you can then present these receipts. Also, make sure that the organizations you donate to are recognized as charitable. Only donations to such organizations are tax deductible.
I hope this information helps you and that you can correctly report your donations in your tax return. If you have any further questions, I am happy to assist you.
Sincerely,
Fred Wittik, Tax Advisor
