How can I deduct donations from my taxes?
July 5, 2023 | 40,00 EUR | answered by Ulrike Voss
Dear Sir or Madam,
my name is Isabel Pilz and I work as an independent artist. In recent years, I have regularly made donations to various non-profit organizations to support them. Now I am wondering if I can deduct these donations from my taxes and how I should go about it.
My current situation is as follows: I made donations totaling 1,500 euros last year. These amounts were transferred directly from my account to the respective organizations. However, I have not received any information on how to report and claim these donations in my tax return.
My concern is that I may be missing out on money by not deducting the donations from my taxes. As a self-employed individual, I am always looking to maximize all opportunities for tax savings to improve my financial situation.
Therefore, my question is: How can I deduct my donations from taxes and what specific steps do I need to take to correctly report this in my tax return? Are there specific requirements I need to meet in order to claim donations for tax purposes? I would greatly appreciate a detailed explanation and helpful tips on how to best approach this issue.
Thank you in advance for your assistance.
Sincerely,
Isabel Pilz
Dear Mrs. Pilz,
Thank you for your inquiry regarding the deductibility of donations in your tax return as a self-employed artist. I am happy to explain to you how you can deduct your donations from taxes and which steps you should take.
Generally, donations to charitable organizations can be tax deductible, as long as these organizations are recognized as charitable. In your case, where you have made donations totaling 1,500 euros, it is important that you obtain the corresponding donation receipts or proofs from the benefiting organizations. These receipts should include the amount of the donation, the name of the organization, the date of the donation, and a confirmation of the charitable status.
In your tax return, you can then list the donations in the "Special Expenses" section. There, you enter the amounts of the donations and attach the corresponding receipts as proof. It is important that you observe the maximum limits for deductible donations. For individuals, this limit is usually 20% of the total amount of income that exceeds the basic tax-free allowance.
In addition to the donation receipts, you should also ensure that the donations actually come from your profit as a self-employed artist and have not already been tax deductible elsewhere. For larger donation amounts, it may also be advisable to seek advice from a tax advisor to ensure that you are maximizing all tax options.
Overall, it is important to keep the donation receipts carefully, observe the maximum limits, and transparently demonstrate the correctness of the donations in your tax return. This way, you can deduct your donations from taxes and improve your financial situation.
I hope this information is helpful to you and I am available to answer any questions you may have.
Sincerely,
Ulrike Voss
