A charitable contribution carryover allows you to deduct charitable donations that you couldn't claim in a prior year because they exceeded the IRS deduction limits based on your adjusted gross income (AGI).
Instead of losing the deduction, you can carry the unused amount forward and potentially deduct it on future tax returns, subject to the applicable limits for those years.
When Does a Charitable Contribution Carryover Occur?
A carryover may occur if your charitable contributions for the year exceed the amount the IRS allows you to deduct based on your AGI.
For example, if you make a large charitable donation in one year and your allowable deduction is limited by your income, the unused portion may be carried forward and deducted in future years.
How Long Can I Carry Forward Unused Charitable Contributions?
In most cases, unused charitable contributions can be carried forward for up to five years after the year of the original donation.
You can continue claiming the remaining deduction each year until:
- The entire carryover is used, or
- The five-year carryover period expires
Any amount that remains unused after the carryover period generally can't be deducted.
Special Rule for Qualified Conservation Contributions
Qualified conservation contributions receive more favorable carryover treatment.
If you have an unused qualified conservation contribution, you may carry it forward for up to 15 years, rather than the standard five-year period.
Do AGI Limits Still Apply to Carryovers?
Yes. A charitable contribution carryover remains subject to the applicable AGI percentage limits in the year you claim it.
This means you may not be able to deduct the entire carryover in a single year if the deduction exceeds the allowable limit for that year's income.
How Are Carryovers Applied?
The IRS requires you to use charitable deductions in a specific order:
- First, deduct all allowable charitable contributions made during the current tax year.
- Then, apply any carryover contributions from prior years.
- If you have carryovers from multiple years, use the oldest carryover first.
Using older carryovers before newer ones helps prevent deductions from expiring before they can be claimed.
How Do I Know If I Have a Carryover?
If you claimed only part of your charitable contributions in a prior year because of AGI limitations, you may have a carryover available.
Your prior-year tax return, supporting worksheets, or carryover schedules can help determine:
- The amount available to carry forward
- The year the carryover originated
- How much time remains before the carryover expires
For examples and more information refer to Publication 526.