IRS Donation Limits

When making tax deductible donations, be aware of the IRS donation limits. Because the IRS donation limits exist, you may not be able to claim all the tax deductions for your donations in the year you make the charity donations. When taxes and the IRS are concerned, IRS taxable donation limits should be expected. There are different IRS donation limits for different things such as International Foundation donation limits and IRS donation limits for 529 & Coverdale plans.

IRS taxable donation limits on itemized tax deductions

Apart from having to make sure that your donations go to qualified organizations not just to people who need them, you also have to watch out for the IRS donation limits on itemized tax deductions of your donations. What are the rules and what are the IRS donation limits?

Overall, charitable contributions deductions or charitable donation deductions are subject to an overall 3% reduction of itemized tax deductions if your adjusted gross income is more than a certain income limit. For example, the income limit for itemized tax deduction in 2006 is $150,500 for married couples filing jointly or $75,250 for married couples filing separate tax returns.

Over the IRS donation limits: Carryover excess charitable donations

If you have made more charitable donations more than the IRS allows you to deduct, you may have to carry over excess charitable giving to the following year. When you have reached the IRS donation limits, you cannot deduct any more charitable contributions or donations.

IRS donation limits for charitable cash donations

For cash donations, you can deduct cash donations or up to 50% of your adjusted gross income per year if you itemize your donations and claiming your tax deductions. The IRS donation limits do not put constraint on the dollar value of your donation tax deduction. The only IRS donation limits are based on your adjusted gross income. If you have exceeded your IRS donation limits, you can carry your donations forward for five years.