Charitable contributions are but one of many SCH A intemized deductions one can take. But until the total of all your itemized deductions exceeds your standard deductions, those itemized deductions have no impact at all on your tax liability. Additionally:
- At best, a maximum of 50% of your charitable contributions are deductible from your taxable income. The amount you get to deduct depends on your AGI.
- There is a $10K limit on your SALT deductions (State and Local Taxes).
- You are limited to deducting the mortgage interest of the first $750K of the total of all outstanding mortgages on personal property real estate. (This does not include rental property).
For many, it would take something catastrophic for their itemized deductions to exceed their standard deduction. For example, extremely high out of pocket medical expenses.
