# How to calculate itemized deduction for a cash contribution?

Assuming the cash contribution is to a qualified charity, the taxpayer can deduct up to 60% of their AGI.

For example, if the taxpayer had adjusted gross income of \$100,000 and made charitable donations in the form of cash of \$70,000 during the year, and then the deduction would be limited to \$60,000 (\$100,000 x 60%).

So what happens to the portion that is not deductible. Well, there is good news for the taxpayer! The remaining \$10,000 can be carried forward for the next 5 years.

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