What is the limit on the charitable contribution deduction for single taxpayers on AGI exceeding the exemption?

The charitable contribution deduction limit for single taxpayers is set at 60% of their adjusted gross income (AGI) for cash contributions made to qualifying charitable organizations. This means that if a taxpayer's AGI exceeds the exemption threshold, they can deduct cash donations up to 60% of their AGI when calculating their taxable income.

This limit was established as part of the tax provisions under the Tax Cuts and Jobs Act of 2017, which increased the previously set limits for certain contributions. It's important for taxpayers to be aware of this limit, as it can significantly impact their tax liabilities, especially if they make substantial charitable contributions.

Only excess contributions above this limit may be carried forward to future tax years. Hence, understanding this limit equips taxpayers with better strategies for their charitable giving and tax planning.