Be Careful With Your Donation Deductions

A reminder that donations you make to individuals aren’t tax-deductible. A man who sent money to his ill sister treated the payments as charitable write-offs. The Tax Court ended up nixing the deduction (Serrano, TC Summ. Op. 2020-15).

Ditto for donations you make through personal fundraising websites that are earmarked for a single person or a small group. This includes contributions made on sites such as to assist with a person’s medical costs or to help a family who is struggling financially because of the coronavirus pandemic. But you can deduct gifts to 501C(3) groups that solicit donations on fundraising sites.

May 2020
The Kiplinger