Tax Tip of the Day

[legomom922]

While I was going through my old bank statements looking for a ck, I came across other cks that I had written that I had totaly forgot about that I could use as deductions. Such things I found were ck to the Girl Scouts for Girl Scout cookies, cks for a candy sale for a baseball team for a fundraiser, cks that I had written for the Haiti Earthquake relief, donations for animal humane societies, a benefit dinner for a Pro Life Organization we had attended, and some churchs I had visited once and put a ck in the offering plate that I had never even remembered visiting! By looking over cancelled cks online, you never know what you will find!

[TomCopeland]

Girl Scouts

Purchasing girl scout cookies is not a charitable contribution because the money got you the cookies. Same thing for the candy sale. The only way these could be a charitable contribution is if the organization gave you a note breaking out the cost of the candy and the amount of a donation.

[legomom922]

I always thought they were deductable because I thought they always advertise "support your local girl scout troop and your contribution is tax deductable" No? Maybe I'm thinking of something else?

[Michael]

I've given money (a check) to the girl scouts but did not buy the cookies. That is deductable.

[legomom922]

I've given money (a check) to the girl scouts but did not buy the cookies. That is deductable.

Oh, so thats the catch! Pay for the cookies but dont take them!

[jen2651]

As a former 501c3 employee, anytime you receive goods for your money, it can not all be a donation. Now, if you donated/paid $10 for a box of cookies, you would deduct the $7 (or however much it was...). For this reason, many organizations will let you 'buy' the item and the remainder is deductible. If it is a higher amount, make sure to get a receipt that states the value of the item and the amount paid and the amount donated. If you pay more than the estimated value at a silent auction, the remainder would be a donation etc. I hope I am explaining this correctly, and if not, please let me know Tome!

[TomCopeland]

tax tip

Jen2651 is exactly correct.

[grandmom]

Aren't the cookies and candies deductible as food or treats for the kids? Well, maybe not if I just eat them by myself during daycare hours huh?

[TomCopeland]

cookies

If you eat the cookies they are not deductible. If the kids eat the cookies as part of a meal or snack you only count it as a meal or snack (no extra deduction because of the cookies). If the kids eat the cookies as a separate snack, treat this as a snack.

[Abigail]

If you buy your dc kids cookies and "gift" them to each family I'm sure you can claim the total cost as a gift.

[TomCopeland]

cookies

If you claim them as a gift you can only deduct up to $25 per person.