How can I declare donations in my tax return?
August 3, 2022 | 40,00 EUR | answered by Wolfgang Stricker
Dear tax advisory team,
my name is Christine Knorr and I am currently facing the challenge of correctly reporting donations in my tax return. Last year, I supported various charitable organizations and would like to know how I can claim these donations for tax purposes.
I am unsure whether I should report the donations in the "Special Expenses" attachment or in the "Income from Self-Employment" attachment. Additionally, I am not sure which receipts I need to provide for the donations and if there is a limit to the deductible donations.
I am concerned that I may make mistakes when reporting the donations in my tax return and therefore miss out on tax benefits. Therefore, I would be very grateful if you could explain to me exactly how to correctly report the donations in my tax return and what documents I need for this purpose.
I am also interested in whether I can deduct non-cash donations such as clothing or furniture for tax purposes and how I should determine the value of such non-cash donations.
I would appreciate it if you could provide me with specific steps on how to correctly report my donations in the tax return in order not to miss out on potential tax benefits.
Thank you in advance for your support.
Best regards,
Christine Knorr
Dear Christine Knorr,
Thank you for your inquiry regarding the correct reporting of donations in your tax return. It is commendable that you have supported various charitable organizations and now want to ensure that you do not miss out on the corresponding tax benefits.
In general, donations are reported in the "Special Expenses" section of your tax return. There, you can report both monetary donations and donations in kind such as clothing or furniture. It is important that you can provide proof for each donation. For monetary donations, a bank statement or a donation receipt from the organization is usually sufficient. For donations in kind, you must prove the value of the donation, for example, with a receipt or an estimation.
There are specific regulations for determining the value of donations in kind. Generally, you should provide the current market value of the donation. This can be determined, for example, by comparing it with similar used items. For larger donations in kind such as furniture, it may be advisable to consult an expert to determine the value.
There is no general limit for deductible donations. However, there are certain maximum amounts that you should consider when reporting donations. These limits may vary depending on the type of donation, so it is advisable to inform yourself in detail beforehand.
To ensure that you do not miss out on any tax benefits, it is important that you carefully document all your donations and submit the corresponding receipts with your tax return. Make sure that the information in the "Special Expenses" section is complete and accurate to avoid any queries from the tax office.
I hope this information helps you in correctly reporting your donations in the tax return. If you have any further questions, I am at your disposal.
Sincerely,
Wolfgang Stricker
