Carryover Charitable Giving

[crdwozan]

2 Questions: I filed 2020 taxes and claimed standard deduction which allowed an additional credit for charitable giving in the amount of $300 - which I claimed. With that said, can I claim charitable giving that exceeded $300 as a 2021 carryover? If allowable, what % of this cash donation is allowable up to the maximum of 60% of AGI?

Thank you

[JohnB5677]

If you claimed the standard deduction last year,  the carryover amount is reduced by the amount that would have been deductible if you itemized it last year.  So, I want to confirm that the $300 is a carryover that exceeded the charitable limit for last year, or was it simply a $300 donation that you had not used?

Yes, If the $300 is a calculated carryover from last year, you can include it on your 2021 taxes.

If you do itemize, you can claim charitable contribution deductions for cash contributions up to 100% of your adjusted gross income (AGI). However, these tax benefits will not apply after the 2021 tax year unless Congress amends the law, which as of Feb 17, 2022, has not occurred

[crdwozan]

Thank you for your prompt reply. Let me see if a can clarify... My actual eligible cash charitable giving for 2020 was $8,109. When I prepared my 2020 return TurboTax advised me that based on income and perhaps other considerations that it was better for me to take the standard deduction which I did. Further, it informed me that I was allowed an additional $300 deduction over and above the standard deduction due to charitable giving. I claimed the $300 additional deduction. So, perhaps the question is, did me taking the standard deduction in 2020 negate $8,109 minus $300 being treated as a 2021 carryover?

Hopefully, this better states my question.

Thank you for your assistance. 

[JohnB5677]

Yes, you sound like you've got a grasp on this.  The $7,809 was the amount you would have gotten for charitable deductions if you itemized it in 2020.  That left you a legitimate carryover of $300.

You can now include it with other charitable deductions to evaluate the Itemized option, or you can use it to increase your standard deduction by $300 for single or $600 if married filing jointly.

To take advantage of this option, first, you must clear all donations from the Deductions & Credits input screen

Online version

1. Go to Deductions & Credits

2. Scroll to the very bottom

3. Select Wrap up Tax Breaks (Online)

4. Continue through the interview to 

5. Charitable Cash Contributions under Cares Act

6. Enter your donation.

In the Desktop version:

1. Go to Deductions and Credits

2. Scroll to the bottom of the page

3. Select Done with Deductions

4. Let's check your Deductions .. Continue

5. Here are your 2021 Deductions ... Continue

6. The standard deduction is right for you ... Continue

7. GET A TAX BREAK FOR DONATING CASH TO CHARITY

8. Enter your amount

[crdwozan]

I am not totally clear. Please allow me to try again. Is it true that me claiming a standard deduction in 2020 prohibits me from using my actual donation of $8,109 less the $300 I did claim as a 2021 carryover? 

[TeresaM · Accepted solution]

Yes, because you took the standard deduction in 2020, any itemized deductions you would have used will not carry over to another year. 

In 2020, the standard was $12,400 for a single person and $24, 800 for married filing jointly.  When you entered your itemized information, it sounds like TurboTax saw that your itemized numbers were less than the standard.

The $300 deduction for cash donations was part of the tax changes for that specific tax year and in addition to the standard deduction. 

When you do itemize, sometimes you can't take the full deduction for your donations because of income limitations. When this happens, you can carry the unused amount forward to another year.  However, this is only if you itemize that year.