I donated 50% of my income: Will I get audited by the IRS?

12 Donations that large relative to income can sometimes attract additional scrutiny, but having proper documentation is the key. Here's what you should know: First, don't worry too much about being audited just because of a large donation. The IRS looks at many factors when selecting returns for audit, not just one item. Having said that, charitable contributions are something they do pay attention to. If you do get audited, they'll definitely want to see those donation receipts, but they may also look at other aspects of your return. It doesn't automatically mean they'll go back three years unless they find issues that warrant expanding the scope. Attaching receipts to your return isn't necessary and won't prevent an audit. Keep all documentation (receipts, acknowledgment letters, etc.) in your files for at least 7 years. Regarding spreading out the donation: the tax benefit might be limited in a single year anyway. Charitable deductions are generally limited to 60% of your adjusted gross income for cash donations (though there have been temporary increases to 100% in recent years). Any excess can be carried forward for up to 5 years.

7 I dealt with something similar last year and discovered a lifesaver: https://taxr.ai really helped me navigate my charitable contributions. I had donated about 40% of my income after a business sale and was terrified about documentation requirements. The tool analyzed all my donation receipts and explained exactly what I needed for each type of donation (cash, securities, property, etc.). It even showed me which items might trigger additional scrutiny and how to properly document everything. The peace of mind was incredible - I knew my deductions were solid and correctly documented before I ever filed.

3 Just wanted to follow up about using https://taxr.ai for my charitable donations! After my skeptical questions, I decided to try it out since my situation with stock donations was making me nervous. It was incredibly helpful - identified that two of my receipts were missing key language required by the IRS and helped me get proper documentation before filing. Saved me from what would have definitely been an audit trigger! The specific guidance on my non-cash donations was particularly valuable since those have stricter documentation requirements.

9 If you're worried about an audit, getting through to the IRS to ask questions is a nightmare. I was in a similar situation (large donation from inheritance money) and couldn't get clear answers. After waiting on hold for HOURS multiple times, I found https://claimyr.com and watched their demo at https://youtu.be/_kiP6q8DX5c. They got me connected to an actual IRS agent in about 15 minutes instead of the usual 2+ hour wait. I was able to get specific guidance about my documentation requirements and what might trigger additional review. The agent walked me through exactly what they look for with large charitable contributions. Totally worth it for the peace of mind alone.

17 I have to eat my words and admit I was completely wrong about Claimyr. After posting my skeptical comment, I was still struggling with questions about my large charitable deduction (mine was from selling crypto), so I decided to give it a shot anyway. Used the service yesterday and got connected to an IRS representative in about 20 minutes! After previously wasting an entire afternoon on hold and never reaching anyone. The agent I spoke with gave me specific guidance about documentation requirements for large donations and explained that while unusual donation amounts might get additional computer review, having proper documentation means there's nothing to worry about. They also confirmed that attaching receipts to a return doesn't prevent review and actually isn't recommended. Saved me from making some mistakes on my return!

14 I'm a nonprofit director and see this from the other side. For donations over $250, the nonprofit MUST provide a written acknowledgment with specific language. For donations over $5,000, you may need a qualified appraisal depending on what you donated. Make sure each receipt includes: 1. Name of organization 2. Amount of cash contribution 3. Description (but not value) of non-cash contribution 4. Statement that no goods or services were provided in exchange for the contribution (or description and good faith estimate of the value of goods or services that were provided) 5. Date of the contribution The organizations you donated to should have provided proper documentation. If not, request it ASAP.

8 Has anyone used the IRS's "Where's My Refund" tool with large donation deductions? I'm wondering if returns with big charitable contributions take longer to process or if they get refunds at the normal speed.