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I donated my late husbands hearing aids and edit says I am limited $500.00 deduction why not the full value?

Forum|Forum|6 years ago
May 31, 2019
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ItsDeductible Online

Best answer by mesquitebean

Are you trying to enter that as a "custom item" at the ItsDeductible website? ItsDeductible will not allow a single item donation entry with a value of more than $500. It doesn't mean that you can't have a value over $500--only that ItsDeductible does not handle it. You can still use the TurboTax program to manually enter that item donation at tax preparation time.

I presume ItsDeductible doesn't work with a donation of an item valued at more than $500 because of the Form 8283 reporting requirements. When over $500, it requires additional information in columns e, f, and g of that form about when the item was acquired, how the item was acquired, and what the donor's basis in the item is. Those questions, among others, will be asked in the TurboTax program in order to prepare Form 8283.

Be aware that with a value of more than $500, additional recordkeeping requirements also come into play.

You can learn a lot more about charitable donations, including recordkeeping requirements, in this IRS Publication
https://www.irs.gov/publications/p526/ar02.html

Specifically, review the recordkeeping requirements for "Deductions Over $500 But Not Over $5,000."

T

TaxGuyBill

Where does it say you are limited to $500?

S

SweetieJean

Were the hearing aids originally paid for by insurance?

M

mesquitebeanAnswer

Are you trying to enter that as a "custom item" at the ItsDeductible website? ItsDeductible will not allow a single item donation entry with a value of more than $500. It doesn't mean that you can't have a value over $500--only that ItsDeductible does not handle it. You can still use the TurboTax program to manually enter that item donation at tax preparation time.

I presume ItsDeductible doesn't work with a donation of an item valued at more than $500 because of the Form 8283 reporting requirements. When over $500, it requires additional information in columns e, f, and g of that form about when the item was acquired, how the item was acquired, and what the donor's basis in the item is. Those questions, among others, will be asked in the TurboTax program in order to prepare Form 8283.

Be aware that with a value of more than $500, additional recordkeeping requirements also come into play.

You can learn a lot more about charitable donations, including recordkeeping requirements, in this IRS Publication
https://www.irs.gov/publications/p526/ar02.html

Specifically, review the recordkeeping requirements for "Deductions Over $500 But Not Over $5,000."

R

rnjklein

I'd like to suggest that, for those people who do have a single item donation (not a vehicle) valued at over $500, that you allow a placeholder entry. If the entry were then flagged when downloaded to Turbo Tax, the preparer will get the info and the user wouldn't forget the entry. .