Making a Tax Deductible Donation to a Public School

Donations to your local public school can be tax deductible, so consider donating to your school without leaving money on the table.

I never really thought about how to give back to my high school until recently, during an extended visit to my small town in Wisconsin where I spent my teens and where my young siblings still attend school. They are involved in band, choir and theater, and so throughout the holiday season I put on my lipstick and we all bundled ourselves against the weather to enjoy an evening with the high school arts programs.

This brings us to the evening of the high school choir’s madrigal performance, during which we drank our warm beverages and relaxed in the vicinity of a glorious Christmas tree. This bushy, pleasingly symmetrical tree with its dark green foliage sparked some real Christmas spirit. When I learned it was up for auction to take home, I bid on it. The tree became a humorously large presence in my parlor later that evening.

It felt good to give back to my old arts program through the tree auction. However, I only realized later that there are smarter ways to give back that would have better positioned me for a tax deduction. So, loves, here are steps to give back to your local public school without leaving money on the table.

Note: We stumbled upon this through our own research for our own personal lives. THIS IS NOT TAX ADVICE, and please consult your tax advisor before making any tax-related decisions.

STEP 1: Determine if you should take itemized deductions.

When you do your taxes, you consider whether you should take the standard deduction or the itemized deduction. This donation would benefit you if you benefit from the itemized deduction. To determine if you do, add up your eligible itemized deductions. If they exceed the standard filing deduction amount for your filing status, then you’ll likely benefit from choosing to itemize your deductions and from this donation. If you don’t, we think you should still donate, but you may not benefit from it.

The standard deductions for 2021 are the following: 1) for married couples filing jointly, $25,100; 2) for single tax payers and married individuals filing separately, $12,550; and 3) for head of households, $18,800.

Note: For 2021 taxes, married individuals filing jointly can claim a $600 donation deduction ($300 for individual tax filers or married individuals filing separately) whether or not you are itemizing.

Step 2: Write a check to your public school.

You can make other types of donations, but we think donations via check is the easiest way. And avoid accepting something in return for your gift because it will get more complicated—you likely won’t be able to write off the full amount.

If your cash donation is less than $250, you will need a receipt, a bank statement, a canceled check or other IRS-approved proof. If you write a check to the school, you can contact your bank once the money has been deducted from your checking account to request a cancelled check (many banks provide images of cancelled checks that can be download for a certain period of time). Contact your bank before you donate if you are not sure how to get a copy of a cancelled check.

If your cash donation is $250 or more, it gets a little more complicated again. You will need a written acknowledgement from the school at the time you make your donation. See page 2 of this IRS guide for details on what this statement should contain. It is your responsibility, and not the school’s, to obtain this acknowledgement.

Step 3: Sign up with TurboTax or however you get your taxes done, and do your taxes! We are no tax experts.

Let us know if this is as painless for you as it was for us.

Posted: 2021