refreshing contributions

[Possi]

I have a refreshing question...

My clients itemize and tithe.

Their working children also tithe.

Can the taxpayer take the children's tithes as well as their own since they claim the children?

[oceanlovin'ea]

Really their money

If their children don't work and the money really comes from the parents, they should be able to claim it.

Linda F

[Possi]

they work

the kids work and tithe.

the kids work outside the home, not for the parents.

[Jesse]

Interesting question, why don't the children gift the money to the parents and the parents tithe and get the deduction? Or have the organization write out the receipt in the parents name?

[Possi]

well...

... what would that teach the children? How to be constructive? hahaha

Since the church statement is in the kids' names, I guess the parents cannot take the deduction.

I thought it would be ok... my reasoning is similar to the education credit... even when the kids pay for college expenses, the parents claiming the exemption get the credit.

When the parents give away the kids' clothes, no matter who pays for them, the parents get the deduction for charitable contribution.

So it should be that the parents can take the charitable contribution.

I wouldn't have taken it unless someone here agreed. I'm trying to benefit this low income little family who tithe no matter what! It's so refreshing to see charitables after seeing so many 6 figure incomes who don't give away squat.

[ChEAr$]

the real reason

is that the joint return reflects contributions ONLY as allowed by law, by the taxpayer(s).
And not the dependents.

[Black Bart]

I take it all

on the parents' return if they're claiming the kids as dependents no matter how the church statements are issued. Many parents give their kids tithing money and the lion's share of actual support (utilities, etc.) is generally furnished by the parents even if the kids work (although there are a few lucky parents of exceptional offspring).

Anyway, you're not usually talking about any real money and I don't see why I can't give these deserving tithers a little "stimulus payment" of my own.

[Possi]

small to some

the kids' contributions will save the parents an additional $46 which is big to them! Heck, it's big to me, too!
*smile*

Thanks for your input!

[FEDUKE404]

Just curious

the kids' contributions will save the parents an additional $46 which is big to them! Heck, it's big to me, too!

...what will be your position if the IRS asks for receipts from the church and the receipts show the name of the child(ren) and not the parents?

Wouldn't that be kinda like me deducting my child's state income tax balance due on my own tax return? ("That dog won't hunt!")

FE

[winnie]

refreshing

It is wonderfully refreshing when someone who REALLY gives to charity walks in as compared to those who hauled their junk off to goodwill and would like to write off a big hunk. (What do you mean? My valuable stuff is not worth what I paid for it new after I used it for several years?!)

It says a lot about a client, doesn't it?! Good luck in your resolution. I have taken it for the parents in the past becuase it usually doesn't make any difference. For example, parents gave $5000, child gave $55.

In NC we have a tax credit if you contribute more than a certain amount and do not itemize. Have seen older children who have tax impact and need to file a return who qualify for that. If they are giving 10%, they would qualify. Sounds like kids in your case are probably not making that kind of money.

[FEDUKE404]

More on taking other's deduction

It says a lot about a client, doesn't it?! Good luck in your resolution. I have taken it for the parents in the past becuase it usually doesn't make any difference. For example, parents gave $5000, child gave $55.

In NC we have a tax credit if you contribute more than a certain amount and do not itemize. Have seen older children who have tax impact and need to file a return who qualify for that. If they are giving 10%, they would qualify. Sounds like kids in your case are probably not making that kind of money.

While I see (and somewhat understand) your point about "it doesn't make any difference," that can be a treacherous path for a client and/or accountant, especially with the new IRS accountability rules in place.

Re the NC tax credit, I would add the clarification that it is not for a contribution that merely exceeds a certain dollar amount but rather the total amount of contributions that exceeds 2% of the federal adjusted gross income. For non-itemizing taxpayers, that question is always on my radar screen, as is (for itemizing taxpayers) looking into taking the sales tax table amounts for all of those retirees in NC covered by the Bailey ruling.

And while I'm here, I've long ago noted that some of the (at least financially) "poorer" folks are those who contribute the most. Nothing galls my derriere any more than to be working on a six-figure income tax return and see less than $100 in cash donations...."but I did take a couple of bags of nice clothing to GoodWill and I think they probably were worth about $2000."

Alas.....

FE

[Kram BergGold]

I vote no

Here is why. The kid is making a contribution for his or her self. So it is theirs to deduct. If the kid was making the contribution for the parent then it would be a gift from the kid to the parent and the parent could deduct it.

[Possi]

ok ok ok

Just for the record, I did not take the deduction. One child made about 6000 and actually donated $535! That says a lot! Fact is, it IS the kids' money donated, and it would not stand up if questioned.

I don't really walk the line where tax law is concerned. I might drink a second glass of wine, but I won't argue tax law with the IRS, or with the EA's on this website! I respect you too much! *smile*

I have had LOTS of 6- figure incomes lately, with very, VERY LITTLE charitable contributions. Except, of course, for the FINE clothes they gave away.

Some days it's hard to hold my tongue. I wait for them to leave, and then I pray... really...

~donna

[Zee]

I think you did the right thing, especially since the parent's told you the kids made the contributions from their own money. I certainly would not routinely add children's contributions to the parents. In the situation where the parents give the child cash to donate, either have the children add the money to the parent's envelope or give them an additional parent's contribution envelope to use. Then, it's a gift to the parent and a second gift to the church.