Can I still deduct Charitable Contributions made by Cash?

Yes, you can. Be aware that these contributions will be under much tighter scrutiny than in years before.

The new rule states that you can not deduct a cash contribution, regardless of the amount, if you can't back it up with written support.

The IRS will want to see proof in the form of a written record which specifies the date of contribution, the amount and the name of the charity. If the contribution was made by checks the IRS will want to see the cancelled check and bank statement as well.

You may also support the deduction with a letter from the charity. The letter must include the name of the charity as well as the dates and amounts of the contributions.

Do I need to mail this information in with my tax return?

No. this information is for your personal record keeping in the event that you are audited by the IRS. Your charitable contributions are still reported in the same way to the IRS, on Schedule A.

Do I need to show this information to my Tax Practitioner?

Technically, you only need to provide with the dollar amount of contributions made by cash and check. It is the taxpayer’s responsibility to ensure that this information is accurate. It is the practitioner’s responsibility to make sure that the information provided is correctly displayed on the tax return.

Where can I obtain more information?

IRS’ Publication 526. Click here to be directed to a link to download this publication.