Login|Contact Us
Question and Answer

Tax

Ask a Tax Question, Get an Answer ASAP!

  • Ask A Question
  • Browse Answers
  • Meet The Experts
  • How JustAnswer Works

Charitable contribution deductions for cash donations made

 

Customer Question

Charitable contribution deductions for cash donations made by individuals to public charities are limited to what percentage of AGI?

 

Submitted: 1967 days and 8 hours ago.
Category: Tax
Value: $30
Status: CLOSED

Accepted Answer

Picture
Expert:  The Guy Behind the Tree replied 1967 days and 8 hours ago.

You are worry free under 20% of AGI.

Above the 20% threshold, there is a 30% threshold, and even a 50% threshold, as mentioned in this public domain article:


"... Only if you contribute more than 20 percent of your adjusted gross income to charity is it necessary to be concerned about donation limits. If the contribution is made to a public charity, the deduction is limited to 50 percent of your contribution base...

The rules on 20 percent limits and 30 percent limits are ... complicated ... If you give an amount in excess of the applicable limitation... the excess is carried over for the next five years..."

http://www.casefoundation.org/spotlight/giveback/tips/tax_benefits

Additionally, if you are going to be subject to the AMT, that introduces another potential issue to your charitable contributions: you may be prevented from realizing full value from those contributions by the AMT being larger than your taxes would otherwise be without the AMT computation.

The ultimate reference for all of this is IRS Publication 526:

http://www.irs.gov/pub/irs-pdf/p526.pdf

Yahoo Finance makes these points on this subject:

"..In some cases, the IRS won't let you claim all your contributions in one tax year. While generally, your donations cannot be more than 50 percent of your adjusted gross income, although in some instances the limit is 20 percent or 30 percent depending on the type of property you donate and the type of organization to which you give it.

You can carry over your excess contributions for up to five more tax years, but your carryover amounts will still be subject to the original adjusted gross income limitation rules. For most donors, these limits don't pose a problem. However, the total of all your Schedule A itemized deductions could be reduced if you make a lot of money ($156,400 for 2007 returns for single, married filing jointly and head of household filers; $78,200 for married couples filing separate returns)...

http://biz.yahoo.com/brn/071203/504.html?.v=1&.pf=taxes

SOoooo... the simplistic answer to your question is "50%" ... but if you can't take full advantage of the deduction due to (a) AMT or (b) making more than the specified amounts, then the answer "50%" is actually misleading since people usually expect a deduction from substantial contributions.

Hope these thoughts help.

Expert TypeExperienced Investor & Financier
Category: Tax
Pos. Feedback: 99.3 %
Accepts: 419
Answered: 12/20/2007

Experience: Don't tax you, don't tax me, tax the guy behind the tree.

Ask this Expert a Question >
 
Tweet

7 Tax Professionals are Online Right Now

Ask Your Question Now
Tax Questions Date Submitted
Good evening My wife and I live in the Cayman Islands and 3/31/2011
my husband works in ny and i work in nj. my husband lives 3/31/2011
My father is a naturalized citizen receiving a pension from 3/31/2011
how do you deduct the loss on an excess 401k contribution in 3/31/2011
My husband passed away in october 2009. I received a K-1 for 3/31/2011
I hold some PFICs in a Roth IRA. Do I have to file a Form 3/31/2011
What is the minumum income that needs to be taxed 3/31/2011
Is there a statute of limitations for Philadelphia collecting 3/30/2011
This month I got a letter from the IRS stating that they are 3/30/2011
My son is living and teaching in Thailand. He earned $8,000 3/30/2011
RSS
Next 10 >
Ask A Tax Professional
Type Your Tax Question Here...
characters left:

Top Tax Experts

See More Tax Professionals

In The News

Nbc
Washington Post
New York Times
Cnn
Learn More

How It Works

  • Ask an Expert
  • Get a Professional Answer
  • Ask Followup Questions
  • 100% Satisfaction Guarantee
Learn More
 
 
 

Recent Articles in Tax

  • Tax Rules
  • Progressive Tax System
  • Tax Computation Questions
  • Property Tax Questions
  • Business Tax Laws
  • Personal Tax Questions
  • Estate Tax Law Questions
  • Income Tax Problems
  • Income Tax Law Questions
  • International Tax Law Questions
All Tax Articles
 
 
 
close
Find Expert answers related to your question.
Sign up using email
We will never post anything without your permission.
Already have an account? Sign in

Ask a Tax Professional

Get a Professional Answer. 100% Satisfaction Guaranteed.
196 Tax Professionals are Online Now
Type Your Tax Question Here...
characters left:
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.
Truste
Contact Us | Terms of Service | Privacy & Security | About Us | Our Network
© 2003-2013 JustAnswer LLC
  • Pearl.com
  • JustAnswer UK
  • JustAnswer Germany
  • JustAnswer Spanish
  • JustAnswer Japan