What is Form 1098-C?
Form 1098-C is used by organizations to report donations of cars, boats, or airplanes. If you donate one of these items, the charity will send you this form, which shows the vehicle's value and any important details. This form is important because you can use it to claim a tax deduction on your return, helping you reduce your taxable income. Keeping this form is essential for your records and to ensure you follow IRS guidelines when filing your taxes.
What is Form 1098-C used for?
Form 1098-C is used for reporting donations of motor vehicles, boats, and airplanes:
- to provide information about the donated vehicle.
- to report the sale of the vehicle by the charity.
- to inform the donor of the tax deduction amount.
How to fill out Form 1098-C?
- 1
Obtain the correct form 1098-C from the IRS website.
- 2
Fill in your name, address, and taxpayer identification number (TIN).
- 3
Enter the donor's name, address, and TIN.
- 4
Record the vehicle identification number (VIN) and description.
- 5
Indicate the fair market value of the vehicle.
- 6
Complete the date of the contribution and the organization’s details.
- 7
Review for accuracy before submission.
Who is required to fill out Form 1098-C?
Form 1098-C must be completed by charities and organizations that receive vehicle donations. They use it to report the donation for tax purposes.
Donors use the form to claim a tax deduction for their donated vehicle.
When is Form 1098-C not required?
When you donate a vehicle valued at less than $500, you do not need to file Form 1098-C. Additionally, if you donate a vehicle to a charitable organization that does not qualify under IRS guidelines, you are also exempt from filing this form.
Individuals who do not receive a written acknowledgment from the charity for their donation are not required to submit Form 1098-C. Always ensure you check with the IRS or a tax professional for the most accurate information regarding your specific situation.
When is Form 1098-C due?
If filing on paper, Form 1098-C must be submitted to the IRS by February 28 of the year following the year of the donation. If filing electronically, the deadline is March 31 of the year following the year of the donation.
It’s important to keep a copy of this form for your records. The charity should also provide you with a copy, so you have all necessary documentation for your tax return.
How to get a blank Form 1098-C?
To get a blank Form 1098-C, issued by IRS, simply visit our platform and click on the Fill Form option. The blank version of Form 1098-C will load in our editor, allowing you to fill it out as needed.
Do you need to sign Form 1098-C?
Form 1098-C does not require a signature according to current IRS guidelines. However, it's important to stay updated by checking the IRS website for any changes.
Always verify the latest regulations to ensure you're following the correct procedures. This helps minimize your liability and keeps your filings accurate.
Where to file Form 1098-C?
If you are required to file electronically, use approved software to e-file. If you qualify to file on paper, print the black-and-white Copy A from the IRS website and send it with Form 1096 to the IRS.
Always check the IRS website for the latest filing guidance and requirements.
