ACH Donation initiated December 31, processed in January - which tax year to claim?

But what if OP's bank statement shows the money leaving in January? Wouldn't the IRS look at that during an audit? I've always thought it's when the money actually leaves your account that counts.

The bank statement date isn't the determining factor for tax purposes. What matters is when you surrendered control of the funds, which typically happens when you initiate an irrevocable transfer. For example, if you write a check on December 31 but the recipient doesn't cash it until January, you can still claim the donation for the December year because you surrendered control when you wrote and delivered the check. The same principle applies to ACH transfers - once initiated irrevocably, you've "made" the donation for tax purposes.

Does this service actually look at your specific documents or just give general advice? I've got a mix of PayPal, credit card, and direct bank donations from December that I'm trying to sort out.

I'm skeptical about services like this...how does it work with unusual donation situations? Like I donated stock in December but the charity didn't sell it until January. Would it handle something complex like that?

They actually review your specific documents and give personalized analysis - not just generic advice. You upload whatever confirmation emails, receipts, or bank statements you have, and they analyze the timing and tax rules for each donation type. For stock donations, they absolutely handle those! The key with stock is when you irrevocably transferred control to the charity, not when they sold it. They'll help identify the proper documentation to prove the correct year and even explain how to value the donation properly.

Wait, how does this service get you through to the IRS faster? Is this actually legit? The IRS phone system is a nightmare...

Sorry but this sounds like a scam. Nobody can magically get you through IRS phone lines faster. They probably just keep you on hold themselves and charge you for it.

It uses a system that navigates the IRS phone tree and waits on hold for you. When an agent finally picks up, you get a call connecting you directly to that agent. It's not magic - it's just technology that does the waiting for you instead of you having to sit there listening to the hold music. Nothing shady about it - you're still talking directly to an official IRS agent. They just handle the frustrating hold time part so you don't have to waste hours of your day.

But credit cards and ACH aren't the same thing. With credit cards, the merchant gets paid immediately by the card company. With ACH, the money doesn't move until it processes. There's a difference, right? I'm genuinely asking because I'm in the same boat with some year-end donations.

You're right that there's a technical difference between credit cards and ACH transfers. With credit cards, the charge is processed immediately even though you pay your bill later. For ACH transfers, the key factor is whether you could cancel the transaction after initiating it. Most ACH donations create an irrevocable commitment when submitted, even if the funds don't move for 1-2 days. If you couldn't cancel it after submission on December 31, then it counts as a 2024 donation regardless of when the money actually moved. The critical point is when you surrendered control of the funds, not when they physically transferred.

Not worth the risk imo. My cousin got audited over charitable donations last year and had to provide receipts showing exact dates for everything. Better to just do it right the first time.