Question

Judy is a retired school teacher who spends most of her time as a volunteer. She itemizes deductions and brought in a list of her charitable contributions. Which of her contributions is NOT deductible? Tuition she paid as a scholarship for her hairdresser's child to attend band camp. The cost of parking in a parking garage near the downtown public library where she reads to children once a week. A car in poor condition that she donated to an organization which provided her with a Form 1098-C. Cash given to her local Girl Scouts group collected to support the local children's science museum.

Answer 1

1. Tuition fee paid for hairdresser’s child - this can’t be tax deductible, because it benefits a person who is known you or a designated group of people. On the other hand if Judy provides funds for an objective or on non discriminatory basis, then it can be tax deductible.
2. Cost of parking in a parking garage – IRS generally doesn’t allow deductions for volunteer work done for charity purpose. However the expenses related to them can be deducted. Hence in this case, the parking costs can be tax deductible.
3. A car in a poor condition donated – this can be tax deductible if the deductions are itemized. Deductions can availed with form 1098 – c. however sometimes the IRS may deny the deduction if there is no form 1098 – c attached to the return.
4. Cash paid to local scout group – this is tax deductible, because it benefits a group as stated earlier. Hence Judy can tax deduct the cash given to the scouts group.