In
most cases, your gift's deductibility is restricted to 50% of your adjusted
gross income (AGI). That is, you cannot give these groups an amount that is
more than half of your adjusted gross income. In some instances, stricter
limits—30% and 20% of AGI—apply.
The
groups for which you can get a full tax benefit for donating an amount up to
half of your annual income are known as 50% limit organizations. This category
includes educational organizations, hospitals and medical research
organizations, government units, and churches.
Qualified
organizations, gifts to which are limited to 30% of AGI, include veterans
organizations, fraternal societies, and certain private family foundations. A
reputable and IRS-qualified charity will be able to tell you its limitation
category.
Example:
Taxpayer has an adjusted gross income of
$60,000 for the year. He may deduct as a charitable donation to his alma mater
roughly $30,000, or 50% of his AGI. He also elects to give to his chapter of
the Rotary Club; since this is a 30% limit organization, he is limited to
approximately $18,000 ($60,000 x 30%). He ultimately contributes $5,000 in cash
to each organization and is able to take the full amounts as charitable
deductions on his tax return.
In
any case, you will need to keep receipts for all donations for a minimum of 3
years. Please see the instructions below on how to enter donations in
TurboTax.
https://ttlc.intuit.com/replies/4797927
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