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D4D TACO
Returning Member

2023 Itemized Charitable Contribution

We (Married Filing Jointly) made $70000 charity donations throughout 2023 using credit card. After itemized all deductions (property taxes, investment and interest income, mortgage interest) we owe IRS $20000 in income tax. Do we get ($70000-$20000) = $50000 back from IRS? 

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2 Replies

2023 Itemized Charitable Contribution

Nope...the charity donations are an income "Deduction"....not a Credit.

 

They can only be used to reduce your taxable income.

 

It might be possible for some of the charitable $$ to carry-over to 2024 taxes, but you have to enter those donations into the software to see exactly how much might be carried over...i.e you have to enter them this year.

Whether any carries over depends on what types of charities you donated to...there are those organizations that have a 60% of AGI, or 30% of AGI, or 20% of AGI limit....and only those $$ that exceed that amount donated in 2023 will carry over to "Possibly" be used in 2024 taxes.

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So you enter your donations, and who you made them to,,,and see what happens in your tax files.  AND.,,.keep exacting records of exactly who/what you contributed to each organization.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
D4D TACO
Returning Member

2023 Itemized Charitable Contribution

Thank you very much for your response. Much Appreciated.

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