I am doing my 2018 taxes with TurboTax premier. In computing the maximum amount allowed charitable contributions, it is using 50% of AGI instead of 60%. Why ?

Forum|Forum|7 years ago
June 6, 2019
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TURBOTAX is using 50% of AGI for max amount of charitable contributions - not 60%. Why ???

TurboTax Premier Windows

Best answer by

60% of your adjusted gross income is the maximum that can be deducted but is not a universally applied percentage to all contributions. There are other percentage categories, and which limit is applied is based on the type of charitable contributions that are made and how they are classified within TurboTax.

50% Limit Organizations include (but are not limited to) churches, certain educational organizations, hospitals and certain medical research organizations, and publicly supported charities. As per the IRS, you can ask any organization whether it is a 50% limit organization, and most will be able to tell you.

If you make cash contributions during the year to an organization from the above category, your deduction for the cash contributions is 60% of your AGI. This 60% limit doesn't apply to noncash charitable contributions.

Please see pages 13 and 14 at the link below for a detailed list of what is included in both categories and the complete rules regarding limits for charitable contributions:
https://www.irs.gov/pub/irs-pdf/p526.pdf

A

Anonymous

Answer

60% of your adjusted gross income is the maximum that can be deducted but is not a universally applied percentage to all contributions. There are other percentage categories, and which limit is applied is based on the type of charitable contributions that are made and how they are classified within TurboTax.

50% Limit Organizations include (but are not limited to) churches, certain educational organizations, hospitals and certain medical research organizations, and publicly supported charities. As per the IRS, you can ask any organization whether it is a 50% limit organization, and most will be able to tell you.

If you make cash contributions during the year to an organization from the above category, your deduction for the cash contributions is 60% of your AGI. This 60% limit doesn't apply to noncash charitable contributions.

Please see pages 13 and 14 at the link below for a detailed list of what is included in both categories and the complete rules regarding limits for charitable contributions:
https://www.irs.gov/pub/irs-pdf/p526.pdf

B

briansm1

Level 2

I was having the same issue and thought it was a bug in TurboTax. However, close reading of page 18 of the linked IRS publication showed that I was getting the 50% limit because of carry-over contributions. Only new contributions are subject to the 60% limit. Perhaps that is what you were experiencing also. Example 1 in the publication was particularly helpful for me.