Updated for tax year 2017
A limit does exist
Yes, there is a limit to the number of charitable donations you can deduct on your income tax return. However, most of us don’t have to worry about it.
That’s because the limit allows you to deduct up to 50 percent of your adjusted gross income to most of the common types of charities, including churches, educational organizations and publicly supported charities. It does lower a bit for contributions to “30 percent organizations,” such as veteran’s organizations, fraternal societies, and nonprofit cemeteries. And, there are a few limits for donated capital gains property.
The good news is if you do happen to hit the limits and are unable to take the full deduction, you can carry it forward to another year.
More to explore:
- Avoid Charitable Scams After Natural Disasters
- Can I claim a charitable deduction if I received a gift in return?
- How to know if your charitable contributions are going to the right place
- How to Maximize Your Tax Deduction for Charitable Contributions
- Donate to Charities to Decrease Taxable Income
- Vasectomies and your taxes: Are they linked?