How to Determine the Limits on Tax Deductions for Charitable Contributions
- 1). Calculate your total charitable contributions for the year (add up all cash and non-cash contributions). The 50 percent limit means that the total deduction cannot be more than 50 percent of your adjusted gross income.
- 2). Ask a representative of the charitable organization whether it is a "50 percent limit" or "30 percent limit" group. Most organizations should be able to tell you.
- 3). Check Internal Revenue Service Publication 78 for the organization's tax-deductibility limits if representatives of the organization cannot give you this information.
- 4). Read IRS Publication 526, "Charitable Contributions," to learn how the 30 percent and 20 percent limits might restrict your contributions.
- 5). Note that the 20 percent and 30 percent limits might apply to gifts made to "50 percent limit" organizations, especially if the gifts are capital-gain property.
- 6). If you determine that one or more limits do apply, calculate your adjusted deduction using the worksheet contained in Publication 526, available online from the IRS Web site.
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