parent buys classroom supplies, deduction?

[joanmcq]

Client's kids get a list of required classroom supplies parents have to buy for school. Each child has the same list. However, regardless of who brought what, all the supplies are pooled for all of the children to use. Donation? Since they are required to buy the supplies, I think not. There is no requisite dollar amount, and one parent that shops at the dollar store will spend less than another that shops at a high end store. But its late and I'd like to get some opinions.

[ILLMAS]

Did the kids get any goods or services in exchange? Probably yes, his/her kid benefited from the supplies, but if the parents didn't have any kids in school and they donated the supplies, yes it will be deductible as a non cash donation.

[Jack from Ohio]

No donation. Receipt form the School showing the value of the "donation?" Fails the test on several grounds.

[JohnH]

I disagree. Donations of cash or goods to a public school are deductible. The parent should save the receipt for the purchase, as well as the canceled check or charge card receipt, (along with the letter from the school detailing what type items should be purchased if they still have it) . List it under Non-Cash/Check contributions showing the school as the charitable organization.

No after-the-fact receipt or acknowledgement from the school is necessary. There are many charitable contributions which are deductible without having an acknowledgement from the charitable organization when paid by check or debit/credit card. One just needs to document the contribution payment properly. It is also important to ascertain that the organization is a qualified charitable organization, of course. The after-the-fact documentation issue arises only when the amount is over $250 for a single gift.

This business of having receipts from the organization keeps coming up, and I'm convinced that there is lots of mis-information circulating among tax preparers on when a receipt from the organization is required and when it is not. Notice the wording from Pub 526 in the following paragraphs, especially where it says "unless you keep ONE of the following" (#2 is "one of the following", but so are #1 and #3):

Cash Contributions

Cash contributions include those paid by cash, check, electronic funds transfer, debit card, credit card, or payroll deduction.

You cannot deduct a cash contribution, re­gardless of the amount, unless you keep one of the following.

1. A bank record that shows the name of the qualified organization, the date of the con­ tribution, and the amount of the contribu­ tion. Bank records may include:

a. A canceled check,
b. A bank or credit union statement, or c. A credit card statement.

2. A receipt (or a letter or other written com­ munication) from the qualified organization showing the name of the organization, the date of the contribution, and the amount of the contribution.

3. The payroll deduction records described next.

Then, a couple of paragraphs afterward, it describes the $250 threshhold and the higher record keeping requirement which kicks in.

For under-$250 contributions, the receipt from the organization is a nice thing to have because it helps establish that it is indeed a qualified charity, but the receipt is not necessary. There are many other ways to verify the legitimacy of the charity, especially since Google is so close at hand for anyone with a computer.

Whenever this conversation occurs on a tax forum, it makes me wonder how many people are denied a legitimate tax deduction by their preparer because the preparer has set an arbitrary requirement which is not called for by IRS.

[Jack from Ohio]

Directed donations are not deductible. This is not a cash donation. It is a parent purchasing required items for their child's classroom.

No charitable donation. Fails too many tests.

[JohnH]

What does "required" mean? Is the child going to be kicked out of school if they don't bring the supplies? Pooling of the supplies is important here. Some parents will buy much more than what is on the list, while others will buy nothing. But if the supplies were not set aside for the use of the specific child, I think it is a valid contribution.

[Lion EA]

You didn't write a check to the school for their general fund. You charged some school supplies at Walmart or where ever. Your child benefited from the supplies. You directed them to be used/delivered them to a specific classroom/teacher that included your child. No.

If you were feeling generous and bought ALL the supplies for the entire classroom and got a thank you note on school letterhead, maybe. Or you were a teach purchasing unreimbursed supplies for her classroom, yes (Form 2106 with receipts/concurrent calendar notes or Sch A Charities with letter from school).

[joanmcq]

Some of the contributions she's made are analogous to donating food items to a food locker or org for a holiday meal; ie bringing a turkey to donate for a dinner for the homeless at our local homeless shelter. The grocery receipt is the receipt, and if under $250, no letter is necessary.

The question is simply whether the required supplies are deductible, since the items are required.

[Lion EA]

Well, there's your answer. Since when is a contribution required? How can it be a donation if it was required?

[jasdlm]

I am required by the bylaws of each of the non-profit Boards I sit on to make a donation to the organization in order to serve on the Board. I have always deducted these. This doesn't seem any different to me (other than it's obviously a non-cash donation).

[DANRVAN]

Look at the substance of the transaction. It looks to me like the purchase was made for the education of the taxpayer's child and for no other reason.

[kcjenkins]

I agree with those who say 'no', this is not a 'donation' because it is obviously for the benefit of the t/p's child.

[joanmcq]

I ended up not taking it. But its good to get feedback from everyone here.

BTW, the client was not adamant in the deduction, but wanted to know if it was available. Like those type of clients.

[WITAXLADY]

USUALLY not required just desired as they are hoping those that can will cover for those that won't or cannot...

Never had to bring in classroom supplies before - definitely a donation as what is going to happen if you do not? Get kicked out?