Yes, it is permissible to deduct more than $10,000 to charity. As to whether or not you can deduct it all, will depend on who you donated to and if you itemize you return. You would also need proof of the donation since it is a cash contribution. You cannot claim a donation for more than 60% of your AGI. So, if your AGI is $20,000 for the year, you would be able to claim a donation up to $12,000. However, the donation is only able to be claimed if you itemize your return.
Itemized expenses include mortgage interest, state and local taxes up to $10,000, medical expenses in excess of 7.5% of your AGI, charitable donations and casualty and losses in excess of 10% of you AGI with the first $100 not counting towards the loss. Your health insurance and all medical expenses are only deductible for the amount that is over 7.5% of your AGI. This means if your AGI is $50,000, then the amount that is over $3,750 is deductible.
Then your total itemized expenses would need to be greater than your standard deduction below in order to benefit from your insurance premium payments.
The 2023 Standard Deductions are as follows:
- Married Filing Joint (MFJ) $27,700
- Married Filing Separate (MFS) $13,850
- Head of Household (HOH) $20,800
- Single $13,850
Blind and MFJ or MFS add $1,500
Single or HOH if blind add $1,850
The IRS doesn't necessarily review every donation. An extremely large donation or one that is out of the ordinary may trigger an audit from the IRS. They will just ask for proof of the donation. So be sure you have maintained records to prove you made this donation. This can even be a cancelled check to the organization or written proof of the donation from the organization with date, amount and name of organization.
Pub 526 Charitable Contributions
Standard versus Itemized Deduction
Charitable Contributions
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