Charitable Contributions for Individuals

Generally, individuals are limited to the amount of qualified charitable contributions they can claim as an itemized deduction to 50 percent of their adjusted gross income. For the period beginning on August 28, 2005 and ending December 31, 2005, that limit is raised by the remaining 50 percent of the taxpayer’s adjusted gross income. There is no requirement in the Katrina Act that contributions by individuals have a connection with Hurricane Katrina. As an extra benefit, the additional contributions allowed are exempt from itemized deduction phaseout for high income taxpayers. Contributions in excess of the limits can be carried over for five years. Special rules exist for calculating this deduction as well as for contributions of noncash or capital gain property.

From December 2005

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