Page 85 - Virtual Currencies

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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
Note. An organization must generally give acknowledgment for each or one acknowledg- 1. A pay stub, Form W-2, or other document
you a written statement if it receives a payment ment that lists each contribution and the date of furnished by your employer that shows the
from you that is more than $75 and is partly a each contribution and shows your total contri- amount withheld as a contribution; and
contribution and partly for goods or services. butions. 2. A pledge card or other document prepared
(See Contributions From Which You Benefit un- by or for the qualified organization that
der Contributions You Can Deduct, earlier.) Amount of contribution. In figuring whether shows the name of the organization and
Keep the statement for your records. It may sat- your contribution is $250 or more, don't com- states the organization doesn't provide
isfy all or part of the recordkeeping require- bine separate contributions. For example, if you goods or services in return for any contri-
ments explained in the following discussions. gave your church $25 each week, your weekly bution made to it by payroll deduction.
payments don't have to be combined. Each
Cash Contributions payment is a separate contribution. A single pledge card may be kept for all contri-
If contributions are made by payroll deduc-
butions made by payroll deduction regardless
Cash contributions include payments made by tion, the deduction from each paycheck is trea- of amount as long as it contains all the required
cash, check, electronic funds transfer, online ted as a separate contribution. information.
payment service, debit card, credit card, payroll If you made a payment that is partly for If the pay stub, Form W-2, pledge card, or
deduction, or a transfer of a gift card redeema- goods and services, as described earlier under other document doesn't show the date of the
ble for cash. Contributions From Which You Benefit, your contribution, you must have another document
contribution is the amount of the payment that is
that does show the date of the contribution. If
You can't deduct a cash contribution, re- more than the value of the goods and services. the pay stub, Form W-2, pledge card, or other
gardless of the amount, unless you keep one of document shows the date of the contribution,
the following. Acknowledgment. The acknowledgment must you don't need any other records except those
1. A bank record that shows the name of the meet these tests. just described in (1) and (2).
qualified organization, the date of the con- 1. It must be written.
tribution, and the amount of the contribu- Noncash Contributions
tion. Bank records may include: 2. It must include:
a. A canceled check. a. The amount of cash you contributed, Substantiation requirements for contributions
b. A bank or credit union statement. b. Whether the qualified organization not made in cash depend on whether your de-
duction for the contribution is:
c. A credit card statement. gave you any goods or services as a 1. Less than $250,
result of your contribution (other than
d. An electronic fund transfer receipt. certain token items and membership 2. At least $250 but not more than $500,
e. A scanned image of both sides of a benefits), 3. Over $500 but not more than $5,000, or
canceled check obtained from a bank c. A description and good faith estimate
or credit union website. of the value of any goods or services 4. Over $5,000.
2. A receipt (or a letter or other written com- described in (b). If the only benefit you The substantiation requirements for non-
received was an intangible religious
munication such as an email) from the benefit (such as admission to a reli- cash contributions of more than $500 also apply
qualified organization showing the name gious ceremony) that generally isn’t to any return filed for any carryover year.
of the organization, the date of the contri- sold in a commercial transaction out-
bution, and the amount of the contribution. side the donative context, the ac- Amount of deduction. In figuring whether
3. The payroll deduction records described knowledgement must say so and your deduction is $500 or more, combine your
claimed deductions for all similar items of prop-
next. doesn’t need to describe or estimate erty donated to any qualified organization dur-
the value of the benefit.
Payroll deductions. If you make a contribu- ing the year.
If you received goods or services in return,
If the acknowledgment doesn't show the
tion by payroll deduction, you must keep: date of the contribution, you must also have a as described earlier in Contributions From
1. A pay stub, Form W-2, or other document bank record or receipt, as described earlier, that Which You Benefit, reduce your contribution by
furnished by your employer that shows the does show the date of the contribution. If the the value of those goods or services. If you fig-
date and amount of the contribution; and acknowledgment shows the date of the contri- ure your deduction by reducing the FMV of the
2. A pledge card or other document prepared bution and meets the other tests just described, donated property by its appreciation, as descri-
by or for the qualified organization that you don't need any other records. bed earlier in Giving Property That Has In-
shows the name of the organization and creased in Value, your contribution is the re-
states the organization doesn’t provide Contemporaneous written acknowledgment duced amount.
goods or services in return for any contri- (CWA). Organizations typically send written
bution made to it by payroll deduction. acknowledgements to donors no later than Jan- Deductions of Less Than $250
uary 31 of the year following the donation. For
If your employer withheld $250 or more from a the written acknowledgement to be considered Except as provided below, no deduction will be
single paycheck, see Contributions of $250 or contemporaneous with the contribution it must allowed for a noncash contribution of less than
More next. meet both of the following requirements. $250 unless you get and keep a receipt from
1. Meet all the tests described under Ac- the qualified organization showing:
Contributions of $250 or More knowledgment, earlier; and 1. The name and address of the qualified or-
You can claim a deduction for a contribution of 2. You must get it on or before the earlier of: ganization to which you contributed;
$250 or more only if you have a contemporane- a. The date you file your return for the 2. The date and location of the charitable
ous written acknowledgment of your contribu- year you make the contribution; or contribution;
tion from the qualified organization or certain 3. A description of the property in sufficient
payroll deduction records. See Contemporane- b. The due date, including extensions, detail under the circumstances (taking into
ous written acknowledgment (CWA), later, for a for filing the return. account the value of the property) for a
description of when a written acknowledgement person not generally familiar with the type
is considered “contemporaneous” with your Payroll deductions. If you make a contribu- of property to understand that the descrip-
contribution. tion by payroll deduction and your employer
withholds $250 or more from a single paycheck, tion is of the contributed property; and
If you made more than one contribution of you must keep: 4. For a security, the name of the issuer, the
$250 or more, you must have either a separate type of security, and whether it is publicly
Publication 526 (2022) Page 19