Which types of charitable contributions qualify for the above the line deduction?
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For tax years 2025 through 2028, individuals who do not itemize deductions (i.e., who claim the standard deduction) may take an above-the-line deduction for certain charitable contributions. The key details regarding which types of charitable contributions qualify for this above-the-line deduction are as follows:
1. Qualifying Contributions
- Type of Contribution: Only cash contributions qualify for the above-the-line deduction.
- Recipient Organization: The cash contributions must be made to organizations described in section 170(b)(1)(A). These are commonly referred to as "50% limit organizations" and include:
- Churches and conventions or associations of churches
- Educational organizations with a regular faculty and curriculum
- Hospitals and certain medical research organizations
- Publicly supported charities
- Certain private operating foundations
- Governmental units (such as the United States, a state, the District of Columbia, or an Indian tribal government, but only if the contribution is for exclusively public purposes)
- Exclusions: Contributions to donor-advised funds (as defined in section 4966(d)(2)) and supporting organizations described in section 509(a)(3) do not qualify for the above-the-line deduction.
- Other Requirements: The contribution must not be for the establishment of a new, or maintenance of an existing, donor-advised fund.
2. Limitation Amounts
- The above-the-line deduction is limited to $1,000 for single filers and $2,000 for joint filers per year for tax years 2025 through 2028.
3. Summary Table
4. Additional Notes
- Non-cash contributions (such as property, stock, or other assets) do not qualify for the above-the-line deduction.
- The deduction is not available for contributions to private nonoperating foundations (unless they meet the 50% limit organization requirements), nor for contributions "for the use of" a qualified organization (such as those held in trust), unless the organization itself is a 50% limit organization and the other requirements above are met.
- The deduction is only available to taxpayers who do not itemize deductions; those who itemize must claim charitable contributions as itemized deductions on Schedule A.
In summary, only cash contributions to 50% limit organizations (excluding donor-advised funds and supporting organizations) qualify for the above-the-line deduction for non-itemizers, subject to the annual dollar limits.
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