info
Google Groups no longer supports new Usenet posts or subscriptions. Historical content remains viewable.
Dismiss
Did a Recovery of a Contribution Take Place?
42 views
Skip to first unread message
Anonymous User
Jan 14, 2017, 11:38:29 AM1/14/17
to
Suppose I make a contribution to a charitable program run by my state government during 2015. It's basically treated as a charitable contribution on my federal income tax return. It happens to also qualify as a credit (rather than a deduction) on my state income tax return.
After my 2015 returns are filed in 2016 there's an, "Oops we screwed up" letter from the state agency that took the contribution. They accepted too many contributions and are revoking the state tax credits for the latest-arriving contributions and will be returning the funds to those people.
Well, had I accepted a refund check I imagine that I would've simply treated it as a recovery on my 2016 federal return. But, I email them letting them know that instead of a refund check they should just treat it as a 2016 contribution. They send me a letter thanking me for my 2016 contribution, but list the date of contribution as the original 2015 date.
Did I technically exercise control over the money when I emailed them telling them to keep the money thus causing a recovery and re-contribution to both take place?
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>
After my 2015 returns are filed in 2016 there's an, "Oops we screwed up" letter from the state agency that took the contribution. They accepted too many contributions and are revoking the state tax credits for the latest-arriving contributions and will be returning the funds to those people.
Well, had I accepted a refund check I imagine that I would've simply treated it as a recovery on my 2016 federal return. But, I email them letting them know that instead of a refund check they should just treat it as a 2016 contribution. They send me a letter thanking me for my 2016 contribution, but list the date of contribution as the original 2015 date.
Did I technically exercise control over the money when I emailed them telling them to keep the money thus causing a recovery and re-contribution to both take place?
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>
Arthur Rubin
Jan 15, 2017, 1:12:58 PM1/15/17
to
On Saturday, January 14, 2017 at 8:38:29 AM UTC-8, Anonymous User wrote:
> Suppose I make a contribution to a charitable program run by my state government during 2015. It's basically treated as a charitable contribution on my federal income tax return. It happens to also qualify as a credit (rather than a deduction) on my state income tax return.
>
> After my 2015 returns are filed in 2016 there's an, "Oops we screwed up" letter from the state agency that took the contribution. They accepted too many contributions and are revoking the state tax credits for the latest-arriving contributions and will be returning the funds to those people.
>
> Well, had I accepted a refund check I imagine that I would've simply treated it as a recovery on my 2016 federal return. But, I email them letting them know that instead of a refund check they should just treat it as a 2016 contribution. They send me a letter thanking me for my 2016 contribution, but list the date of contribution as the original 2015 date.
>
> Did I technically exercise control over the money when I emailed them telling them to keep the money thus causing a recovery and re-contribution to both take place?
I should trim the question, but I can't really find much to trim which wouldn't affect things. Yes, you exercised control over the refund, just as you would if you elected to assign a 2015 (tax year) state income tax refund to your 2016 estimated taxes. You can find verification of THAT in the Federal tax instructions.
> Suppose I make a contribution to a charitable program run by my state government during 2015. It's basically treated as a charitable contribution on my federal income tax return. It happens to also qualify as a credit (rather than a deduction) on my state income tax return.
>
> After my 2015 returns are filed in 2016 there's an, "Oops we screwed up" letter from the state agency that took the contribution. They accepted too many contributions and are revoking the state tax credits for the latest-arriving contributions and will be returning the funds to those people.
>
> Well, had I accepted a refund check I imagine that I would've simply treated it as a recovery on my 2016 federal return. But, I email them letting them know that instead of a refund check they should just treat it as a 2016 contribution. They send me a letter thanking me for my 2016 contribution, but list the date of contribution as the original 2015 date.
>
> Did I technically exercise control over the money when I emailed them telling them to keep the money thus causing a recovery and re-contribution to both take place?
--
Arthur L. Rubin, CRTP, AFSP, Brea, CA
Alan
Jan 16, 2017, 4:52:35 PM1/16/17
to
On 1/14/17 8:38 AM, Anonymous User wrote:
> Suppose I make a contribution to a charitable program run by my state government during 2015. It's basically treated as a charitable contribution on my federal income tax return. It happens to also qualify as a credit (rather than a deduction) on my state income tax return.
>
> After my 2015 returns are filed in 2016 there's an, "Oops we screwed up" letter from the state agency that took the contribution. They accepted too many contributions and are revoking the state tax credits for the latest-arriving contributions and will be returning the funds to those people.
>
> Well, had I accepted a refund check I imagine that I would've simply treated it as a recovery on my 2016 federal return. But, I email them letting them know that instead of a refund check they should just treat it as a 2016 contribution. They send me a letter thanking me for my 2016 contribution, but list the date of contribution as the original 2015 date.
>
> Did I technically exercise control over the money when I emailed them telling them to keep the money thus causing a recovery and re-contribution to both take place?
>
You made a 2016 charitable contribution. You have a recovery of the
> Suppose I make a contribution to a charitable program run by my state government during 2015. It's basically treated as a charitable contribution on my federal income tax return. It happens to also qualify as a credit (rather than a deduction) on my state income tax return.
>
> After my 2015 returns are filed in 2016 there's an, "Oops we screwed up" letter from the state agency that took the contribution. They accepted too many contributions and are revoking the state tax credits for the latest-arriving contributions and will be returning the funds to those people.
>
> Well, had I accepted a refund check I imagine that I would've simply treated it as a recovery on my 2016 federal return. But, I email them letting them know that instead of a refund check they should just treat it as a 2016 contribution. They send me a letter thanking me for my 2016 contribution, but list the date of contribution as the original 2015 date.
>
> Did I technically exercise control over the money when I emailed them telling them to keep the money thus causing a recovery and re-contribution to both take place?
>
deduction you took in 2015. If you received the full tax benefit of the
itemized deduction then you enter the full amount on Line 21 of your
2016 Form 1040. If not, then see page 24 in IRS Pub 525 on how you
compute how much to report as income.
0 new messages