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Tax Issues for Private Individuals

A. Gifts and Charitable Donations

Gifts and charitable donations are tax deductible for the donor. As noted in “Responsibility for Acknowledging Gifts and In Kind Donations,” the donor must have a written acknowledgment of individual gifts of $250 or more. The donor is also responsible for establishing the value of non-cash donations.

B. Personal Income from 4-H projects

  1. Professional Services: An individual paid $600 or more in a calendar year (January 1st–December 31st) from a 4-H organization will receive an IRS Form 1099 (see “Responsibility for Paying Taxes on Raffle Proceeds”). This income must be reported with personal tax returns.
  2. Youth Projects: The auction of an animal or other 4-H project can generate income for the 4-H youth participant. This income is not subject to sales tax (due to casual and isolated sale provision), nor income tax due to the age and/or income of the 4-H youth.

C. Out-of-Pocket Expenses

As a coordinator or leader of a 4-H club, you may be able to deduct some of the amounts you pay in giving services to the organization. The amounts must be:

  1. Unreimbursed. You cannot be subsequently repaid for these costs by another source.
  2. Directly connected with the services you provided.
  3. Expenses you had only because of the services you gave.
  4. Not personal, living, or family expenses.

Common questions: