Question

During 2020, Jasmine paid the following amounts to qualified charities:

Ten separate $200 contributions to her church (no receipts) = $2,000
Donated furniture (without contemporaneous written acknowledgment) = 400
One donation (with a receipt and contemporaneous written acknowledgment) = 5,000
What amount can Jasmine claim as charitable contributions in itemizing deductions?
a.$2,400
b.$5,000
c.$7,400
d.$7,000
e.$0

Answer 1

Jasmine can claim $5,000 for her charitable contributions, as it is the only donation with a receipt and contemporaneous written acknowledgment.

Step-by-step explanation:

When itemizing deductions for charitable contributions on a tax return, the Internal Revenue Service (IRS) requires different forms of documentation, depending on the type and amount of the contribution. For cash contributions, receipts or bank records are necessary to prove the donation, especially if any single contribution exceeds $250. For non-cash donations like furniture, if the value is over $500, the taxpayer needs a qualified appraisal and must fill out a Form 8283. In the case presented here, since Jasmine did not have receipts for the ten separate $200 contributions totaling $2,000, and there was no contemporaneous written acknowledgment for the donated furniture valued at $400, these cannot be claimed. However, the one donation of $5,000 with proper documentation can be claimed.