How can I deduct my donations from taxes?
April 4, 2024 | 40,00 EUR | answered by Anneliese Schaaf
Dear tax advisor,
my name is Leon Buchner and I have a question regarding the tax deductibility of donations. In the past, I have regularly made donations to various charitable organizations to support them financially. Now I am wondering how I can claim these donations in my tax return.
I have always carefully kept my donation receipts, but I am unsure of how to report them in my tax return. What documents are required and how exactly do I need to enter the donations in the tax return? Are there specific limits that I need to consider in order to deduct donations from my taxes?
I am concerned that I may be missing out on tax benefits from my donations because I do not know how to correctly report them in the tax return. I want to make sure that I am taking advantage of all opportunities to deduct my donations from taxes and thereby reduce my tax burden.
Could you please explain to me how I can deduct my donations from taxes and what steps I need to take in my tax return for that? I would be very grateful if you could help me achieve the best possible tax relief through my donations.
Thank you in advance for your assistance.
Sincerely,
Leon Buchner
Dear Mr. Buchner,
Thank you for your question regarding the tax deductibility of donations. It is very commendable that you regularly support charitable organizations financially and are considering how to claim these donations on your taxes.
In order to deduct donations in your tax return, you usually need donation receipts or acknowledgment letters from the organizations to which you donated. These receipts must contain specific information, such as the name and address of the organization, the amount of the donation, the date of the donation, and a confirmation that it is a tax-exempt organization.
In your tax return, you will enter the donations in the "Special Expenses" section. There is a separate field for donations to charitable organizations. You enter the total amount of your donations and attach the corresponding receipts as proof. It is important to keep the receipts safe as the tax office may request them in case of an audit.
There are no fixed limits for the tax deductibility of donations, but there are certain percentage limits in relation to your total income. It is recommended not to claim more than 20% of your total income for donations, as amounts exceeding this limit are usually not tax-deductible.
If you are unsure about how to report your donations in your tax return, I recommend seeking advice from a tax advisor or a wage tax assistance association. They can assist you individually and ensure that you utilize all opportunities to deduct your donations and reduce your tax burden.
I hope this information helps you. If you have any further questions, please feel free to contact me.
Best regards,
Anneliese Schaaf
Tax advisor
