Tax Notes from Chris Weigand

Notes on Charitable Deductions for WUS

The following notes were prepared by Chris Weigand, who works as a volunteer tax aide.

Massachusetts now allows for charitable contribution deductions, which follow federal guidelines with the two exceptions below, which are not deductible in Massachusetts: 

·        Used Clothing

·        Household Goods

IRS Publication 561 which is at the following link https://www.irs.gov/publications/p561 provides further guidance for charitable deductions. Food is considered to be perishable, so it is not a household item. This would mean that contributions to the Thanksgiving Baskets or food collected at the church for the Woburn Council of Social Concern would be deductible in Massachusetts. Most items given to the mitten tree or the rummage sale would be considered to be clothing or household goods and would not be deductible in Massachusetts.

The following is copied from IRS Publication 561 “Household items do not include paintings, antiques, objects of art, jewelry, gems, and collections like stamp and coin collections.” These items would be deductible in Massachusetts, subject to the limitations imposed in Publication 561 noting that these items should be priced at their FMV (Fair Market Value).