Don’t let the bureaucracy punish your generosity. The US Postal Service recently made an important rule change that could cause many charitable donors to miss out on their expected annual tax benefits.
The USPS clarified that most postmarks are applied to letters at regional processing facilities, which often receives letters from local post offices a day or more after you drop them in the mailbox.
This means a generous donor who signs and mails a check in late December, only to have the envelope postmarked in January, would not have their donation approved by the IRS for a 2025 tax deduction.
To avoid this issue, donors may take mail to the front counter of a USPS office and ask for a hand-stamped postmark or use certified mail with a postmarked receipt.
Today, the easiest and quickest way to ensure a timely and tax-deductible donation is to give online. The John Locke Foundation, for example, instantly accepts credit card and cryptocurrency donations on our website.
There are many other ways to give, including stock transfers, that may also provide tax advantages to donors.
The IRS often relies on a paper trail of postmark dates to determine whether your tax return, tax payment, or accompanying documents for tax deductions were sent on time.
This means the USPS delayed postmark rule could leave those who cut it close to the deadline in danger of being penalized. Such a risk is heightened in late December, when the postal system is bogged down with more packages and envelopes than any other time of year.
On top of bureaucratic delays, we all know the holiday season is busy as our personal schedules are filled with Christmas shopping, parties, church services, and more. Don’t let the calendar slip away from you and miss your chance to claim a tax-deductible gift before the year ends.
Consider giving online or mailing your gift right away to avoid missing out on your 2025 tax deduction. Merry Christmas and Happy New Year!