What you should keep in mind if you donate money during the Christmas season and want to deduct your donation from the tax
Do you like to do something good at Christmas time? Are you financially involved in a relief organization? Or donate a significant amount of money?
Then do not forget to assert your good deeds at the next tax return in 2017 for the year 2016! The following tips show you what matters.
How to secure the tax benefit for your good deeds
First, this question arises: Can I claim that from the tax? Answer: You can deduct your donations for tax purposes – an advantage many miss. It is not so difficult to sell the donations in your own tax return, if you know the conditions. Please note the following points.
In order for a donation to be tax deductible, these 3 requirements must be met:
- The donation is voluntary and without consideration. Example: A donation to a recognized aid organization for a social project is not a problem. But a donation that the golf club expects from the new member upon admission is not recognized by the tax office.
- The donation is made to a tax-privileged organization for tax-privileged purposes. Such organizations are often non-profit associations, but they can also be public institutions such as universities or libraries.
- You can submit a receipt for the donation – in official German: receipt confirmation.
If the tax deduction is possible, the question arises: How do you proceed with your next tax return in order to secure the advantage? To claim your donations for tax purposes, enter them in the tax declaration in the cover sheet on page 2 in the section “Special expenses”.
Then the question remains, what happens to the donation receipts, so the receipts. That depends on the amount of the donation:
- If the individual donation is less than 200 €, you do not need to submit the receipt to the tax office to cancel it. Then a bank statement will suffice to show that you made the donation. If you have participated in a TV fundraising campaign and have an amount deducted from your phone bill, attach the corresponding phone bill. The amount is shown here and you can settle the donation tax deductible.
- For donations starting from 200 €, you have to submit the document of the recipient in original with the tax office in order to secure your tax advantage.
In the coming year – ie for donations from January 2017 – there is a relief. Then, vouchers no longer have to be submitted, but only kept for the tax office to check on demand.