What is Form 1098-C?
Form 1098-C is used by charitable organizations to report donations of motor vehicles, boats, and airplanes to the IRS. This form is essential for claiming a tax deduction for your charitable contribution, especially if your donation is valued at over $500. It provides important details, including the vehicle's value and how the charity utilized it. Having this form ensures you can accurately claim the appropriate deduction on your tax return, making it an important document for your tax records.
What is Form 1098-C used for?
Form 1098-C is important for anyone donating a vehicle, boat, or airplane. Here’s what it’s used for:
- Documentation for Tax Deductions: Helps donors claim federal tax deductions for their charitable contributions.
- Transparency and Compliance: Ensures compliance with IRS rules by detailing the donation and its use by the charity.
- Fair Market Value: Shows the fair market value of the donated item.
- Charity's Intent: Indicates the charity's plans for the donation, which can affect tax benefits.
How to fill out Form 1098-C?
- 1
Identify the vehicle as a motor vehicle, boat, or airplane primarily used on public roads.
- 2
Determine its value, ensuring it exceeds $500.
- 3
Complete Form 1098-C by filling in the necessary vehicle details and sale proceeds.
- 4
Attach Copy B of Form 1098-C to your income tax return for deduction purposes.
- 5
File Form 1098-C with the IRS if required.
Who is required to fill out Form 1098-C?
The donee organization, usually a charitable entity, is responsible for completing Form 1098-C. This form must be filed with the IRS for each contribution of a qualified vehicle valued over $500.
Donors contributing a qualified vehicle to a charity valued over $500 must use Form 1098-C to substantiate their tax deductions. They need a copy from the charity for their federal tax return.
When is Form 1098-C not required?
Form 1098-C isn't required if the donated vehicle's value is $500 or less, unless the charity makes significant improvements or gives it to a needy individual. You also don’t need it if the charity doesn't prepare the form according to IRS guidelines. Additionally, if you don't plan to claim a tax deduction, you can skip this form altogether.
When is Form 1098-C due?
The deadline for Form 1098-C is within 30 days after the charity sells the donated vehicle. For e-filing, the deadline is March 31, 2025, and for paper filing, it is February 28, 2025. Additionally, charities must send recipient copies by March 3, 2025.
How to get a blank Form 1098-C?
To get a blank Form 1098-C, simply visit our website. The charitable organization that receives your donation issues this form. We have a blank version ready in our editor for you to fill out. Remember, our platform assists with filling and downloading, but not filing forms.
How to sign Form 1098-C?
To sign Form 1098-C, you must provide a handwritten signature, as the IRS does not recognize electronic or digital signatures for this form. After filling out the necessary fields using PDF Guru, you can download the completed form for your records. Remember to check for the latest updates regarding any changes to the signing process, as the IRS guidelines may evolve. PDF Guru assists you in preparing the form, but you will need to handle submission through other means.
Where to file Form 1098-C?
Form 1098-C must be filed with the IRS. You can submit it electronically by following the IRS's procedures for e-filing.
If you prefer paper filing, send Copy A along with Form 1096. Don’t forget to provide Copies B and C to the donor, along with written acknowledgment.
