How can I consider donations in my tax return?
July 5, 2023 | 30,00 EUR | answered by Wolfgang Lenzner
Dear tax advisor,
My name is Otto Tiefental and I have regularly made donations to various non-profit organizations in recent years. However, I have never indicated in my tax return that I have made these donations. I am now wondering if it is possible to claim these donations for tax purposes and how best to include them in my tax return.
My background is as follows: I am an employee and earn an average salary. As I would like to do some good and am interested in various social and environmental issues, I have regularly donated to organizations such as the Red Cross, Greenpeace, and local animal shelters in recent years. These donations amount to a significant sum and I am now wondering if it is possible to deduct this amount from my taxes.
My concern is that I may be giving away money by not reporting the donations in my tax return and therefore not taking advantage of tax benefits that I may be entitled to. I would like to know if and how I can report my donations in my tax return to benefit from the tax advantages.
Can you please explain to me how I can include donations in my tax return and what documents I need for this? Are there specific limits or requirements that I need to consider? I would be very grateful if you could help me with this matter.
Thank you in advance.
Sincerely,
Otto Tiefental
Dear Mr. Tiefental,
Thank you for your inquiry regarding the tax deductibility of your donations in your tax return. It is very commendable that you regularly support charitable organizations and are involved in social and environmental issues. It is indeed possible to claim your donations as tax deductible and therefore benefit from tax advantages.
In order to include your donations in your tax return, you must specify them in the "Special Expenses" attachment. There, you can enter the amount of the donations as well as the receiving organizations. It is important that the benefiting organizations are registered as charitable organizations and can issue donation receipts. These receipts are necessary to claim your donations as tax deductible. Without a donation receipt, you cannot deduct the donation.
The amount of deductible donations is determined by legal requirements. Generally, you can claim up to 20% of your total income as special expenses. Donations can be deducted up to 20% of income. If you have donated more than this amount, you can claim the excess in subsequent years.
To include your donations in the tax return, you will need not only the donation receipts but also your income statements and all relevant documents and payment receipts. It is important to keep all documents carefully and be able to present them if necessary. Make sure that the donation receipts are correctly issued and contain all necessary information.
In summary, it is possible to include your donations in the tax return and claim them as tax deductible. Follow the legal requirements and gather all necessary documents. If you have any further questions, I am happy to assist you.
Best regards,
Wolfgang Lenzner
