The deduction for charitable donations is based on your adjusted gross income (AGI) and the type of donation.

For cash donations to qualified charitable organizations, you can typically deduct up to 60% of your adjusted gross income (AGI).
Non-Cash Contributions are usually limited to 30% of your AGI for donations of appreciated property (such as stocks or real estate).
Contributions to private foundations, universities, and other organizations may be limited to 20% of your AGI.

Keeping accurate records of your donations and ensuring they are directed to qualified organizations is crucial.

Here's an illustration for the explanation:

encer, who itemizes deductions, had adjusted gross income of $60,000 in 2024. The following additional information is available for 2024:

• Cash contribution to church $4,000.
• Purchase of art object at church bazaar (with a fair market value of $800 on the date of purchase) 1,200.
• Donation of used clothing to Salvation Army (fair value evidenced by receipt received) 600.

What is the maximum amount Spencer can claim as a deduction for charitable contributions in 2024?

Explanation:

The church is able to deduct 100% of the cash contribution. The amount of money needed for the clothing donation is $600. The difference between what was given and received, or $400, constitutes the contribution to the art object.