While charitable giving warms the soul, it may also be a practical approach to saving on your taxes. When planning your giving, it is important to consider how your income may affect your eligibility to claim a deduction on your tax return. There are several limitations associated with the size of your adjusted gross income (AGI), with caps on total charitable deductions for any one year ranging from 20% up to a maximum of 50% of AGI. Charitable contributions above specified limits may be carried over to the following tax year. Higher-income donors must also be wary of restrictions on total itemized deductions, which are gradually phased out above certain levels of AGI.

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