Taxes

You know that the EIN (Employer Identification Number) is the unique identifier for any nonprofit registered with the IRS. EIN checking is more precise than DNA testing.

And the EIN is the gateway to information about the nonprofit, with the organization’s IRS Form 990 being the first place to look.

CharityCheck101.org is my favorite way to find EINs. It’s super fast and free. Of course, you can also ask the nonprofit to tell you its EIN (they should do so without hesitation).

Now there’s a super fast and free way to use an EIN to find an organization’s latest Form 990. More . . .

A Q&A to help you protect your year-end charitable deductions

Question #1: You use your credit card to donate to a qualified charity on December 31 this year. You don’t pay the credit card bill until January next year. For which year do you get to take the charitable contribution deduction on your federal (IRS) income taxes? Of course, you’ll only get an charitable donation deduction if you itemize deductions on your return.

Answer: Donations charged to a credit card before the end of the year count for that year. This is true even if the credit card bill isn’t paid until the next year. In other words, credit card contributions are deductible in the year the charge is entered into the system. The timing is easy to prove — you use the date on the credit card slip or receipt. Be sure the slip or receipt shows the December date (sometimes credit card charges don’t get processed right away, and your statement might show a January date for the charge).

Question #2: Instead of using a credit card, you use your bank debit card or PayPal account (that draws directly from your bank account) to make the December 31 donation. Your bank statement doesn’t show up until January. For which year do you get to take the contribution deduction? Of course, you’ll only get an charitable donation deduction if you itemize deductions on your return. More . . .