Suggested I post this question here so I get more input. I filed my taxes as head of household. The retired CPA who did my taxes for AARP said that he would question my amount of personal donations to Salvation Army and St. Vincent de Paul. It totaled 1400.00 aprox. In the years past it has been doubled and one year triple that. I am almost at the 20% tax bracket. I know I donated even more than that but when DD in hospital just wanted to get them done in a hurry and didn't search for other reciepts. (Yes, I know I should have filed them in folder, already have 2013 set up) He says that I am red flagging myself. The donations are legit and I have the reciepts from places. I actually spend hours writing down a short description of each article and then the value. He is questioning the value of items. I also think he thinks no one can have this many clothes. He obviously does not have 19 and 22 year old daughters. I use, as I always have, a printout from the internet that said what items can be valued at for donations that will used as tax deductions. I use the low end of scale just to be safe. For example a women's career dress blouse I valued at 3-4 dollars. I believe that to be fair. Just to see and because he was giving me such a hard time, I had his supervisor take the donations out. I lost 400.00 dollars and also then could not itemize. I very quickly told him to put it back. Am I red-flagging myself? Are my values too high? I don't want or need an audit as the stress in my life right now is already way too high. I believe that this year's donation will be way higher as I am cleaning out my daughters and my "stuff". Trying to simplify our lives some and get rid of my mountain of totes full of seasonal clothes. Any advice would be appreciated. I did explain to him that this was not just my clothing but also two adult daughters who I claim. Thanks!
Is this the first time this particular person has prepared your taxes? If so, I would ask the person did them the other years you had high donations to the same charities.
I'm surprised because we always donate tons of stuff. My MIL buys things at yard sales, etc and resells (It's her job). Anything that doesn't sell in a certain time frame she donates. Once she reaches their max donations she gives to us to donate. We donate that stuff plus tons of clothes, etc. We always have the max in donations and have never been audited (knock on wood). Honestly, I should try selling our stuff but I get so frustrated at the small amount people want to pay that I end up donating for tax purposes. I'm lazy I guess.
Having large deductions could bring some extra scrutiny to your return. There are also different rules depending on what the value of your donations are. On the other hand, you could simply be chosen at random for an audit.
You will be flagged (if at all) because of donations relative to income level. So go to the IRS site and use their valuations for what the items are,make sure you have all the reciepts from the S.A. and the sheet w/ accurate descriptions (size,brand,condition). I always use a little lower than the S.A. would sell it for as a guide per my old accountant.
Maybe s second opinion. The H &R block is doing those free second looks.
My SIL used to be real conservative and i dropped her even though she was free (she was costing me IMHO). she baulked at $100. for a huge drawstring garbage bag of LN teen clothes. I mean jeans are $40. new.
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