Schedule A - Gifts to Charity
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Gifts to Charity Schedule A Deductions
Charitable contributions are deductible when the taxpayer itemizes deductions on Schedule A (Form 1040). To be deductible, a charitable contribution must be made to a qualified organization. Refer to Publication 526 for the definition of "qualified organization".
An organization's current standing as a non-profit entity can be checked at the IRS website here.
Click below for more information:
Types of Qualified and Non-Qualified Organizations
| Qualified Organizations Include | Non-Qualified Organizations Include |
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Examples of Deductible and Non-Deductible Charitable Contributions
| Deductible Charitable Contributions | Non-Deductible Charitable Contributions |
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Gifts to Charity Menu in Tax Processors Plus Desktop
Cash Contributions - Enter the total value of contributions that were made by cash or check to include out of pocket expenses that were incurred performing services for a charitable organization. Include the taxpayer's actual cost of gas and oil used while performing the services on this line, or enter the taxpayer's charitable mileage below.
To create an itemized statement, press the F10 key on your keyboard, select New, then enter a description of the contribution and the amount.
Charitable Mileage - If not deducting actual expenses, enter on this line the total charitable miles driven while performing services for a qualified charitable organization. Taxpayers can deduct the actual cost of gas and oil used while performing services for a qualified charitable organization or can deduct the standard charitable mileage rate. Enter actual expenses above, or total charitable miles driven on this line.
Qualified Disaster Cash Contributions Made in 20xx (2019 and prior)
Qualified 100% Cash Contributions Made in 20xx (2020 and forward) - Enter here gifts by cash or check if all of the following are true:
- The gift was paid to a qualified charitable organization
- The gift was made for relief efforts in the disaster area of a federally declared disaster
- The taxpayer obtained a written statement from the qualified charitable organization that the contribution was used for relief efforts
Qualified disaster cash contributions are not subject to the adjusted gross income limitation.
Non-Cash More than $500 - Form 8283 must be completed and attached to the tax return for any non-cash deduction over $500. For information on filling out Form 8283, click here.
Non-Cash Less Than or Equal to $500 - Enter the total value of contributions of property other than by cash or check. The deduction is limited to the fair market value of the contributed property on the date it was donated.
Total Current Year Contributions - Tax Processors Plus Desktop calculates this amount based on the entries from the lines above.
Carryover from Prior Year - If the taxpayer's contribution amount is limited based on their adjusted gross income, the unallowed portion can be carried forward up to a maximum of 5 years. Tax Processors Plus Desktop will pull forward the carryover amount from the prior year return, buts the carryover can also be manually entered if the prior year return wasn't prepared in Tax Processors Plus Desktop.
Current Year Contribution Limits - The program will calculate the total current year cash and non-cash contribution limits. Select if needed to modify the limits if needed.
Note: This is a guide on entering charitable contributions into the individual income tax return in Tax Processors Plus Desktop. This is not intended as tax advice.
Additional Information:
IRS Publication 526 - Charitable Contributions