Charitable Carryover

[Rhema]

I itemized my taxes in 2020 and had a charitable carryover of about $12,000. Then, I took the standard deduction in subsequent years (2021, 2022, 2023) when not working (no income). I was required to file taxes those years since I had insurance through the Affordable Care Act (form 1095a received).

Question: I plan to work this year (2024) and had thought that the carryover is good for 5 years but after reading another post, am wondering if I am wrong -- since I took the standard deductions in previous years, there would be nothing more that I could carryover?

Thanks in advance!

[JulieS]

Yes, you can carryover your excess charitable contributions even if you don't itemize, but you must reduce the amount by the amount you would have been able to deduct if you had itemized in those years. 

In other words, if you had $20,000 to carryover to 2021 and you income was $10,000, you have to reduce your carryover to 2022 by $6,000, that is:

Your income $10,000 X 60% contribution limit = $6,000

So the amount carried to 2022 would be $14,000.

[Rhema]

Thanks JulieS.

A follow-up question. My total income (line 9) has been negative every year (2021, 2022 and 2023) due to a capital loss that I have reported yearly on Schedule D.

How would a negative income factor into that 60% contribution limit calculation for a future tax filing? 

[JulieS · Accepted solution]

Yes, in a year when your total income is less than $0, your allowed deduction would be $0, so in your case, you would still have the $12,000 charitable carryover for 2024. 

[Rhema]

Thank you, JulieS!