Here’s When It Is (and Isn’t) Tax-Deductible

As backpacks fill up and classroom wish lists circulate, it’s common for families to pitch in with extra supplies, books, or even cash to support local schools and teachers. While those donations are generous, and much appreciated, not all of them are tax-deductible.

Here’s how to know the difference (and how to make sure your good deed also brings a potential tax benefit):

When It Is Deductible:

• You donate to a qualified 501(c)(3) organization.
  This includes most public schools, accredited private schools, and PTA/PTO groups that have official nonprofit status.
  
• You have documentation.
  Always ask for a written receipt, especially if your donation is valued over $250. For smaller donations, a canceled check or credit card statement can also work.
• You itemize deductions.
  Charitable donations only reduce your tax bill if you itemize instead of taking the standard deduction. 

When It’s Not Deductible:

• You give directly to an individual teacher or classroom.
  While thoughtful, donations to individuals—even through classroom apps or social media—typically don’t qualify as charitable contributions.
  
• You’re reimbursed.
  If you’re repaid for your donation or supplies, even partially, it’s no longer a deductible gift.
• The school isn’t a qualifying nonprofit. 
  Not all private or homeschool co-ops qualify. When in doubt, check their nonprofit status on the IRS website. 

At Abacus!, we believe generosity should be rewarded, not penalized. Our team can help you document, track, and strategize around your charitable giving—so your back-to-school giving doesn’t get lost in the shuffle. Contact us at info@abacuspro.com or (417) 823-7171.