The amount of charitable donations you are permitted to claim in any given year is directly affected by your adjusted gross income. This can result in leaving you with deductions you are unable to claim for that year. However, the tax codes permit you to carry charitable deductions over into the following year and apply them to the next tax season.
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Instructions
Things You'll Need
IRS Instructions for Charitable Contributions--Publication 526
Ask the charitable organization that you have donated to whether it is a 50-, 30- or 20-percent-limit organization.
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Realize this will set a guide for you as to the limits of your charitable deductions, based on your adjusted gross income for the year you are claiming.
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Apply the same limits for carrying over deductions as you did when making your original donations.
Fill in the Proper IRS Form
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Utilize the standard IRS Form 1040 as you normally would.
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Use the resulting adjusted gross income to discover the maximum amount of charitable deductions you may make in order to distribute your carry over correctly.
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List the amount of charitable deductions you intend to carry over on Form 1040, Schedule A.
Verify Whether There Are Any Special Rules for Carrying Over Charitable Contributions
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Anticipate special circumstances if you were married and have experienced changes in your marital status.
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Expect additional complications if you decide to take the standard deduction in a year that you plan to carry over charitable contributions.
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Seek out additional rules that will apply in the event of the death of a spouse.
Tips & Warnings
Due to the 5-year limitation when carrying over charitable deductions of several years, it is advisable to use the oldest contributions first.
If the donations you carry over are for "qualified-conservation contributions," you may extend the limit for up to 15 years.
Be sure to keep good records regarding your charitable contributions. You must be able to prove the amounts and dates of your contributions, regardless of your chosen method of donating.
Be prepared to show the same proof of a charitable contribution and its worth for the amounts that you carry over as you would for the year in which the original contribution was made.
If you are not well versed in tax law, consider getting help from an accountant or tax adviser.
You must use the contributions you are carrying over within 5 years, or you will lose the ability to claim these deductions.
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