Limits on charitable deductions (2023 Update)

If you've read Publication 526, you are aware that charitable organizations qualified to receive contributions that an individual taxpayer may deduct are in two categories. The first category is 50% limit organizations, which includes your publicly-supported charities, churches, and educational organizations, and the second category is the rest of them.

Generally, contributions to 50% limit organizations are limited to 60% of AGI. That's confusing, but I don't write the tax code. But there are circumstances in which a qualified cash contribution is limited to 100% of AGI if the taxpayer elects to apply the 100% limit.

Because of the weirdness in 2020 in which retired taxpayers weren't required to take required minimum distribution from IRAs, the 2020 transcript notes that IRS knocked the charitable contribution down to

60%. I vaguely recall reading this in the Publication 526 when I was preparing this tax return.

Reading the instructions for Schedule A Line 11, I was supposed to note the treat as qualified contributions election for a 100% on the dotted line to the left of the entry for Line 11.

I missed that. Aargh.

As per the tax code, contributions to 50% limit organizations, such as publicly-supported charities, churches, and educational organizations, are generally limited to 60% of adjusted gross income (AGI). However, there are circumstances where a qualified cash contribution can be limited to 100% of AGI if the taxpayer elects to apply the 100% limit. This is done by making an election on Schedule A, line 11, by noting the "treat as qualified contributions" election on the dotted line to the left of the entry for Line 11.

It is important to note that due to the changes in the tax code in 2020, the IRS has reduced the charitable contribution limit to 60% for certain taxpayers who were not required to take required minimum distribution from IRAs.

It's important to consult with a professional tax advisor or refer to the Publication 526 for detailed information on the limits of charitable deductions, and to ensure you are following the correct rules and regulations for your specific case.

It is not possible for me to determine whether you could have contributed more based on the information provided. Factors such as your adjusted gross income, charitable contributions made throughout the year, and the specific organizations to which you made contributions would all affect your ability to contribute more. Additionally, the election you made on Schedule A, line 11, would also impact this.

It's recommended that you review your tax return and consult with a professional tax advisor to determine whether you were able to contribute more, and if so, how to make adjustments for the current year or any future years. They would have the necessary information to give you a more accurate answer.