How Do You Determine The Limits On Tax Deductions For Charitable Contributions?
The good news about limits on tax deductions for charitable contributions is that there are no limits if your total contributions for the year are 20 percent or less of your adjusted gross income. For example, you would have no limits if you donated $20,000 of your $100,000 adjusted gross income. The amount of your deduction might be limited to either 20, 30, or 50 percent of your adjusted gross income, depending on the type of property and type of organization that receives your gift. Calculate your total charitable contributions for the year (add up all cash and non-cash contributions). The 50 percent limit means that the total deduction cannot be more than 50 percent of your adjusted gross income. Ask a representative of the charitable organization whether it is a “50 percent limit” or “30 percent limit” group. Most organizations should be able to tell you. Check Internal Revenue Service Publication 78 for the organization’s tax-deductibility limits if representatives of the organiz
