Form 1098-C is a very specialized and sometimes tricky form. Rather than reporting payments you have made on a mortgage, as with a 1098, Form 1098-C is used by charitable organizations to report contributions of a qualified vehicle that has claimed a value of more than $500. The organization must file a separate Form 1098-C for each contribution. Keep in mind that the IRS defines a qualified vehicle as any motor vehicle manufactured for primary use on public roads, boats, and airplanes. Put simply, if you donated a vehicle to an organization as a charitable contribution, you will receive a 1098-C in order to claim the charitable deduction on your annual taxes.
If you work for one of these charitable organizations, you’ll likely need to handle hundreds of forms relating to donations. Form 1098-C will likely be one of them. If you’re in need of a system better designed to complete, distribute, and file tax and wage forms, you need a semi-automated software product. The W2 and 1099 Software from Advanced Micro Solutions is a great place to start.
What You Need to Know About Form 1098-C
Donating cars to charitable organizations is more common than one might think. If you work for a charity, you’ll likely encounter this form at some point. The 1098-C form is distributed only after the sale of the car (by the charity) and subsequent gathering of revenue; there is a specific box on the form noting how much the charity was able to sell the vehicle for. If a vehicle is sold for less than $500, you are not required to prepare this form.
If you’re struggling with a specific aspect of this form, there is a comprehensive document detailing instructions for most boxes listed on Form 1098-C.
1098-C Support is Important
Like most forms used to report charitable giving, the 1098-C is extremely specific. When filling out this form, you’ll need to identify the circumstances under which the vehicle was donated, a qualitative description of the vehicle, and motor vehicle specifications, such as its year, make, model, and odometer mileage. This is a lot of information to juggle, especially if you only need to use it once or twice.
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With an automated software tool, you won’t need to worry about retaining all this information to complete Form 1098-C. With our W2 and 1099 software, you can enter the data you need, automatically perform certain calculations, and store the information in a back-end data warehouse for safe keeping. When you handle hundreds of pieces of data daily, this type of streamlined organization is extremely important.
Software Support for Form 1098-C Filing
This form is an important document for most charitable organizations, but most people will encounter some iteration of the 1098 in the course of running a business. And if you don’t end up needing to use a 1098 form, you’ll certainly need to use a W2 or 1099. With our software, you can access all versions of these essential tax reporting forms. If you’re interested in learning about how AMS can improve your business’ or organization’s accounting procedures, give our Sales and Information team a call at 800-536-1099. With us, your Form 1098-C filing will be easy and stress free.