How to Determine the Limits on Tax Deductions for Charitable Contributions

Video Transcript

"Tax laws have really gotten complicated. You really need an expert to try to figure some of these things out. Luckily you've got me. I'm Kristen Brand and today I'm going to talk to you about how to determine the limit on tax deductions on charitable contributions. There are several thresholds that you'll need to understand when you take a look at this. The first place you'll want to look is at the bottom of page one of your 1040 to determine you adjustable gross income or your AGI. There are different percentages of your AGI that are deductible.Typically, if you donate less than 20 % of your AGI you'll be able to take that tax deduction. You can not actually donate more than 50 % of you AGI and use that to your benefit for taxes. If you're trying to navigate the waters between the 20 and 50 %, you'll probably need to consult you local CPA or do some research on your own online with irs.gov. It's really a little bit more complicated than just a few minutes, I can tell you. So I suggest consulting an expert. Again, my name is Kristen Brand and that is how to determine the limits on charitable giving."