![]() If your donation totals less than 20% of your AGI (the case for the overwhelming majority of people), then don’t worry about all of the details. At a maximum, you will be able to deduct 60%. In practical terms, at a minimum, you will be able to deduct 20% of your AGI. ![]() See that form and the instructions in the itemized deductions worksheet for more info on how much you can deduct. Your deduction may be further limited to 50%, 30%, or 20% of your adjusted gross income, depending on the type of property you give and the type of organization you give it to. The amount you can deduct for charitable contributions generally is limited to no more than 60% of your adjusted gross income. The percentages are based off what you donate and who you donate it to, with a maximum qualified charitable contribution of 60% of your adjusted gross income.Īccording to IRS publication 526 (the gospel for qualified charitable contributions): There are maximum IRS charitable donation amounts, but they are a percentage and not a defined dollar amount. What is the Maximum Charitable Donation Limit Per Year? The big exceptions are that contributions made to political campaigns or organizations or for-profit organizations are not qualified charitable contributions, and are not tax deductible. Make sure you do your research to determine if the organization is tax exempt. 501(c)(3) organizations are included, but other types of orgs are as well. ![]() The IRS only allows you to deduct donations from your taxable income if the donation was made to a qualified tax-exempt organization. This is an area that I have particular expertise in, as I worked in fundraising for a non-profit for 3 years. And if you don’t itemize your taxes, you may want to hold off on donating altogether. If you intend to donate a large cash or high value non-cash amount to a qualified 501(c)(3), it is in your best interest to get the full allowable tax deduction for your generosity. While this may not seem like something you’d ever encounter, it would not be wise to completely write off that possibility.
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