Although the standard deduction is the easier option, you can’t deduct your charitable contributions, which are a type of itemized deduction. It pays to do the math first. When the total of your allowable itemized deductions exceeds the standard deduction amount, you should come out ahead by itemizing.
How much can a charitable donation be deductible?
Generally, itemizers can deduct 20% to 60% of their adjusted gross income for charitable donations. The exact percentage depends on the type of qualified contribution as well as the charity or organization. Contributions that exceed the limit may be deductible in future years.
When can I deduct charitable contributions?
Individuals can deduct contributions only in the year in which they donate. This applies whether the taxpayers use the cash or accrual method of accounting. Those who claim deductions for your charitable contributions need to record each donation.
