Question

Ida is a receptionist who made a donation of $500 to her church. If Ida's AGI (Adjusted Gross Income) is $42,300, can she deduct the donation on her income tax return? If so, what amount.

Answer 1

According to current tax laws, you are able to deduct up to 50% of your AGI.  If donations exceeds that amount, the additional amount can be carried over and applied to the following 5 yrs tax returns.  Since Ida's AGI IS 42,300 and 50% far exceeds her donation of $500.00. she will be able to deduct the entire amount.