Video: Tax Tips for Charitable Giving
Learn How to Give, Wisely, to Charity for Tax Purposes!
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Video Transcript: Taxes – Carrying over Charitable Givings
Hi I’m Chun Wong, a CPA and partner at Safe Harbor, LLP, a tax and audit firm based in San Francisco, California. Today’s topic is taxes carrying over charitable givings. Charitable contributions help to financially fuel our favorite charities and provide us with a tax deduction. This charitable deduction is normally taken on Schedule A by itemizing the amount contributed on your form 1040. The deduction for your charitable contribution is normally limited to 50% of your AGI. So what happens if all of a sudden in mid year your income drops below the amount that you’ve already contributed? The unused portion of these charitable contributions are carried forward to another year for up to five years. However there is one caveat. In order for the carryovers to be used, your current year contributions must be used first. When donating to your favorite charity or your favorite cause, be sure that you can take fully the deduction that you’ve provided. Check with your local tax professional or email us at firstname.lastname@example.org.
Video Target: Those Giving to Charity
People with significant income or assets can give to charity in a tax effective way. Indeed, in some circumstances you can carry over a charitable deduction from one year to the next.