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  1. #1
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    Default charitable donations

    Last year we did not have to use the money we had for our charitable donations so we were supposed to carry it over till this year. When I entered the numbers in the turbox tax program it said that we would be red flagged for an audit because we were over the 5% of our total income and to use only 5%..... just wanted to check to make that is correct . So now do I calculate what our 5% would be and use that amount or just use the charitable donation that I have for this year (Because it is more like the 5% allowable ) and not bother with carrying any over from last year.

    Thanks

    Karen

  2. #2
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    strongmommy's Avatar
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    Default

    Hi there,

    You can claim charitable donations worth up to 75% (not 5%) of your total income. If the person claiming the donations doesn't need them all then they carry forward again.

    Not sure why turbo tax is using 5% because that number is definately wrong. I'm also not sure why it doesn't just take the allowable max. and apply it - you really shouldn't need to do the math yourself? I don't use turbo tax so can't offer much about the program but if it's still not letting you I'd call their 1-800 number for direction.

    If you were doing the returns by hand on paper, you would claim donations paid up to a max. of the 75% of the person's income. I would use the amounts carried forward from last year and apply them first ... because they can only be carried forward for 10 years. If it means you don't need to use any from the current year ... then those ones would carry forward to next year.

    Hope that helps!

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