Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
Can someone get me up to date on the amount of donations allowed each year, and also if you can carry forward some unused amount? We donate money, and also some donations of items to the Salvation Army. (In case there are different amounts allowed for each type of donation).

I am going over my last year's taxes from the CPA and they carried over $5000 for donations. At this point, I have no idea what this is. We usually donate perhaps $1000-1500 each year in total donations of cash plus items. I sent them an email, but I probably won't hear back for a few days. Just thought I would see if I can get any info here from you Fools. Thanks!

-Footsox
Print the post Back To Top
No. of Recommendations: 1
Can someone get me up to date on the amount of donations allowed each year, and also if you can carry forward some unused amount? We donate money, and also some donations of items to the Salvation Army. (In case there are different amounts allowed for each type of donation).

IRS Publication 526 explains the limits on various classes of charitable contributions.

https://www.irs.gov/pub/irs-prior/p526--2020.pdf

In addition, you can use a Qualified Charitable Contribution (QCD) to donate as much as $100,000 to qualified charitable organizations each year once you are over the age of 70.5. The IRA custodian transfers the contribution directly from your IRA to the charity. The QCD is a non-taxable distribution from your IRA.
Print the post Back To Top
No. of Recommendations: 1
The QCD is a non-taxable distribution from your IRA.

Non-taxable but the total amount of the distribution is reported on the 1099-R. The taxpayer must keep records for the non-taxable amount and report the non-taxable amount on their 1040.
Print the post Back To Top
No. of Recommendations: 0
Outside of your IRA, you have to itemize deductions to claim charitable deductions. Itemized deductions were capped at $10K last time around but last year we had a $300 deduction while using the standard deduction.

The Build Back Better Act now in Congress proposes the raise the deduction cap to $80k effective this tax year. We shall see if it passes. That may make answers to your question unanswerable at present.
Print the post Back To Top
No. of Recommendations: 0
For the Tax Year 2020 it was $300 charitable deduction if using the Standard Deduction.

I believe that for the 2021 Tax year it will be 600 if MFJ with the Standard Deduction ..
Print the post Back To Top
No. of Recommendations: 0
Outside of your IRA, you have to itemize deductions to claim charitable deductions. Itemized deductions were capped at $10K last time around but last year we had a $300 deduction while using the standard deduction.

Publication 526 claims that the limits on charitable deductions range from 20% to 60% of your AGI and depends on the classification of the charity.

An article on the Haynie & Company web site in September claims that the limit has been increased to 100% of AGI for the 2021 tax year.

https://www.hayniecpas.com/2021-tax-deductions-for-charitabl...
Print the post Back To Top
No. of Recommendations: 0
Are you sure about "itemized deductions were capped at $10K?" I know that SALT was capped, but I don't recall that total itemized deductions were ever capped at $10K. When itemizing, there are medical expenses, property taxes, mortgage interest, charitable contributions, etc..

PW
Print the post Back To Top
No. of Recommendations: 0
Instructions for Schedule A say--

Line 5
The deduction for state and local taxes is
generally limited to $10,000 ($5,000 if
married filing separately). State and local taxes subject to this limit are the taxes that you include on lines 5a, 5b, and
5c

The limit applies to state and local taxes including income and property taxes. That's the SALT limit which they propose to raise to $80K in the Build Back Better bill passed by the house.
Print the post Back To Top
No. of Recommendations: 0
Thanks for the replies. There is a lot to digest in Publication 526. It is 27 pages long! I am going to call the IRS and have them mail me the publication..

I don't think we are in the big leagues when it comes to donations. We DO itemize. Our donations are between $1000 and $2000 per year. They are split between: (1.) Cash (on credit card) to the food bank, and animal shelters, and (2.) Donations of goods (clothing, furniture, kitchenware, etc.) to the Salvation Army.

So..... without me reading the whole IRS publication 526, any additional thoughts on my situation?

I thought it was interesting that for 2021, I could donate 100% of my AGI? I am certainly not in that category, but that is interesting.

-Footsox
Print the post Back To Top
No. of Recommendations: 2
Thanks for the replies. There is a lot to digest in Publication 526. It is 27 pages long! I am going to call the IRS and have them mail me the publication.. - footsox

-----------------

Why not save some time and avoid the phone call. (Does the IRS even take calls these days?).

Just download the pdf. MCCrockett provided the link in the second post in this thread...

Here is that link again

https://www.irs.gov/pub/irs-prior/p526--2020.pdf
Print the post Back To Top
No. of Recommendations: 0
Instructions for Schedule A say--

Line 5
The deduction for state and local taxes is
generally limited to $10,000 ($5,000 if
married filing separately). State and local taxes subject to this limit are the taxes that you include on lines 5a, 5b, and
5c

The limit applies to state and local taxes including income and property taxes. That's the SALT limit which they propose to raise to $80K in the Build Back Better bill passed by the house.


But that's a cap on a specific type of itemized deduction. It is NOT 'itemized deductions capped at $10k' And given the current standard deductions, there would really be no point in itemizing deductions if they were actually capped at $10k

AJ
Print the post Back To Top
No. of Recommendations: 0
So..... without me reading the whole IRS publication 526, any additional thoughts on my situation?

Go back and look at your prior year tax returns, looking for the year(s) when you weren't able to take a full charitable deduction.

AJ
Print the post Back To Top