About Charitable Tax Deduction Limits
Charitable tax deductions are an itemized deduction that you can claim for gifts made to qualifying organizations. However, you must itemize your deductions to claim the deduction.
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General Limit
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For most charities, the IRS allows your charitable donation deduction to be up to 50 percent of your adjusted gross income.
30 Percent Limit
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If you value your deduction using the fair market value of an appreciated property, such as a plot of land, you are limited to deducting 30 percent of your adjusted gross income. The 30 percent limit also applies to certain organization types such as cemeteries or veterans' groups.
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20 Percent Limit
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If you donate an appreciated property to a group subject to the 30 percent limit and value the donation using the fair market value, you are limited to deducting 20 percent of your adjusted gross income.
Adjusted Gross Income
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Your adjusted gross income equals your total taxable income minus any adjustments to income such as student loan interest or contributions to a traditional IRA.
Carry Forwards
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If your charitable deduction value exceeds the limits, you can carry over the excess to be used up to five years in the future. For example, if you donate $40,000 and your limit is $30,000, you would deduct $30,000 and carry forward the remaining $10,000 to the next tax year.
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