Discussion:Donation or Tuition?
From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.
From TaxAlmanac
(Difference between revisions)
| Revision as of 06:09, 12 April 2009 Ddrakecpa (Talk | contribs) (New Discussion) ← Previous diff |
Revision as of 12:24, 12 April 2009 Bjeter (Talk | contribs) (You mean a likel) Next diff → |
||
| Line 4: | Line 4: | ||
| {{ForumNewPost|UserID=Ddrakecpa|Date=April 12, 2009|Text=My client received a letter of acknowledgement from their synagogue for their contributions and the letter specifically states that no services were received for their donations. Their list of contributions includes donations for their son to attend preschool at the synagogue. The clients says the fees she pays are called "donations", however she also says her son could not attend the preschool unless she makes these donations. The donation amount is a fixed fee and not discretionary. To me, it seems that she is really paying tuition for the preschool, but yet she does have the letter from the synagogue. Has any one faced a similar situation? Donation or Tuition? | {{ForumNewPost|UserID=Ddrakecpa|Date=April 12, 2009|Text=My client received a letter of acknowledgement from their synagogue for their contributions and the letter specifically states that no services were received for their donations. Their list of contributions includes donations for their son to attend preschool at the synagogue. The clients says the fees she pays are called "donations", however she also says her son could not attend the preschool unless she makes these donations. The donation amount is a fixed fee and not discretionary. To me, it seems that she is really paying tuition for the preschool, but yet she does have the letter from the synagogue. Has any one faced a similar situation? Donation or Tuition? | ||
| Thanks! }} | Thanks! }} | ||
| + | |||
| + | {{ForumReplyPost|UserID=Bjeter|Date=12 April 2009|Text=You mean a likely unpaid volunteer with no tax experience wrote a letter on synagogue stationery that said tuition was a contribution? I'm shocked. I can't believe this goes on. Ok, enough sarcasm, here's my real answer: | ||
| + | |||
| + | The synagogue can call these things donations all they want but calling it a donation doesn't make it so. It's ultimately your client who will owe the additional tax if the IRS audits this. You should separate the real donations from the tuition and report both where appropriate. It's possible the tuition would qualify for the dependent care credit if it meets the requirements, but taking a charitable contribution for that is just plain wrong. }} | ||
Revision as of 12:24, 12 April 2009
Discussion Forum Index --> Advanced Tax Questions --> Donation or Tuition?
Discussion Forum Index --> Tax Questions --> Donation or Tuition?
| April 12, 2009 | |
| My client received a letter of acknowledgement from their synagogue for their contributions and the letter specifically states that no services were received for their donations. Their list of contributions includes donations for their son to attend preschool at the synagogue. The clients says the fees she pays are called "donations", however she also says her son could not attend the preschool unless she makes these donations. The donation amount is a fixed fee and not discretionary. To me, it seems that she is really paying tuition for the preschool, but yet she does have the letter from the synagogue. Has any one faced a similar situation? Donation or Tuition?
Thanks! | |
| 12 April 2009 | |
| You mean a likely unpaid volunteer with no tax experience wrote a letter on synagogue stationery that said tuition was a contribution? I'm shocked. I can't believe this goes on. Ok, enough sarcasm, here's my real answer:
The synagogue can call these things donations all they want but calling it a donation doesn't make it so. It's ultimately your client who will owe the additional tax if the IRS audits this. You should separate the real donations from the tuition and report both where appropriate. It's possible the tuition would qualify for the dependent care credit if it meets the requirements, but taking a charitable contribution for that is just plain wrong. | |
