Deduction and Carryovers
Contributions in excess of the deduction limits may be carried forward for five years. An amount can be carried over even though an individual does not itemize in the year of the contribution (carryover then equals excess over 50% (or, for cash contributions, 60% in 2018-2025, 100% in 2020, 2021) of AGI).
Calculating the Deduction and Carryover
Substitute 60% for 50% in 2018-2025, 100% for 60% in 2020, 2021.
Where:
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A = Contributions Subject to the 50% Limit
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AA = the lesser of 50% of AGI or A
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B = Contributions Subject to the 30% Limit
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BB = the lesser of (30% of AGI – AA) or B
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C = Contributions Subject to the 20% Limit
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CC = the lesser of ((50% of AGI – AA) + (30% of AGI – BB)) or C
Allowable
Contribution = AA + BB + CC
Carryover = A + B + C – (AA + BB + CC)
For each category of contributions, deduct first the contributions in that category made in the current year, then the carryover amount (starting with the earliest year). IRS Pub. 526 includes a worksheet that can be used to apply the deduction limits. Contributions carried over are subject to the same percentage limits in the year to which they are carried. For example, contributions subject to the 20% limit in the year in which they are made are 20% limit contributions in the year to which they are carried.
Caution:
Charitable contribution carryovers from previous returns are added to pre-death charitable contributions made by the decedent and the total is subject to limitations based on a percentage of AGI. Thus, the charitable contributions carried over from a prior year may be limited and not fully deductible on the decedent’s final return.