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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15203
Experience:  15years with H & R Block. Divisional leader, Instructor
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I was on contract with a company I paid $350.00 a month. I

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I was on contract with a company I paid $350.00 a month. I was under the impression I was getting some advertisement, no advertisement. After several years of this $350.00 a month I learn several month ago this was going to a charity, a charity I was unaware. However, I claim this on my taxes as an expends. Not as a donation. Do I have to redo my taxes to take advantage of this none taxable reduction?

Robin D :

Hello and thank you for using Just Answer,
Unfortunately you would need to amend any prior return that you did not use the deduction. If it has been more than 3 years and the deduction leads to a refund, the IRS nor the state is obligated to issue the refund. This is because of the 3 year statute of limitations.

Robin D :

Before you go back for at least the 3 years and amend your returns, make sure that the charity is an allowed charity.


Qualified organizations include nonprofit groups that are religious, charitable, educational, scientific, or literary in
purpose, or that work to prevent cruelty to children or animals



To claim a deduction for contributions of cash or property equaling $250 or more you must have a bank record, payroll deduction records or a written acknowledgment from the qualified organization showing the amount of the cash and a description of any property contributed, and whether the organization provided any goods or services in exchange for the gift.

Robin D :

Please respond so 1. I will know you were able to view and 2. I can clarify anything you need further information about.

Robin D. and other Tax Specialists are ready to help you
Customer: replied 3 years ago.

Mr. Robin D, The organization I was under contract with the Air Force Exchange. on a Military Base. They want to pay them the last $350.00 I am holding off to get tax question answered. Do I get some paper work from them to show I paid or just my tax return? Do I ask them if this charity was an allowed charity?


Joseph

Yes you will need to ask them the exact charity. Your paper work from them in the year paid may be enough but if the charity is not listed exactly then yes get a document of some sort.
Customer: replied 3 years ago.

Mr. D, Just one more question. If I took all of my expences as a deduction would this $350.00 be included? Do this $350.00 be list as a charity a part from the other deductions?

Charitable deductions are listed on the Schedule A. So if you do not itemize deductions they are not even allowed for Schedule C filers. You stated that you were paying this amount to a company and thought it was for advertisement. If they were in turn giving it to a charity then you may not even be required to do anything. If the payment was made to the charity by you though then that is a need for amending. If the payment was to a charity and they listed your company name on something then it is still an expense that you could leave as first reported by you.

Please let me know if you need further.

 

 

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Customer: replied 3 years ago.

Mr. D,
This act done by Exchange was legal. Know matter how misleading this act was for several years was okay, right.

Customer: replied 3 years ago.

Mr. D,
This act done by Exchange was legal. Know matter how misleading this act was for several years was okay, right.

I really cannot address any legal aspect of their actions. I am not sure what the contract involved. If you were paying for what was supposed to be an advertising charge to you then you were correct in claiming it as a deduction for advertisement. If the advertisement was not mentioned or if you were in a contract for advertisement services and it was not true then it may not be legal but that would be for an attorney to address as that would be outside the scope of taxation.