What is a 60 percent donation cap?

In a normal tax year, the 60 percent donations cap would apply to most cash contributions, regardless of the donor’s AGI, but lower limits would apply to other types of contributions. For example, non-cash contributions, such as clothing and appliances are limited to 50 percent of AGI.

Can I claim a tax deduction for a charitable donation?

The IRS allows deductions for cash and noncash donations based on annual rules and guidelines. The 2023 and 2024 rules require donors to itemize their deductions to claim any charitable contribution deductions and are limited to the AGI limit of 60% for cash donations for qualified charities.

How much can a donor deduct from a tax return?

This year, donors can fully deduct contributions equal to up to 100 percent of their adjusted gross income, or AGI. Under the Tax Cuts and Jobs Act that took effect in 2018, the cap was set at 60 percent, a bump up from the previous limit of 50 percent. It allows taxpayers who do not itemize a $300 deduction for charitable giving.