For a crypto donation to be eligible for a federal tax deduction, it must be given to a qualified organization recognized by the IRS. Direct donations made to individuals, even if they are in need, do not qualify for a charitable deduction under federal law. The IRS requires increasing levels of documentation for larger noncash contributions. A written acknowledgment from the receiving charity is necessary for gifts of $250 or more. If the deduction exceeds $500, donors must file Form 8283. For deductions above $5,000, a qualified appraisal is generally required, and for contributions exceeding $500,000, a copy of the appraisal must be attached to the tax return.