Can unused itemized charitable deductions be carried forward or is it use it or lose it?
We're looking at a situation for our 2023 taxes. My wife and I file MFJ and our standard deduction is $27,700. I've calculated that our itemized deductions would only add up to about $25,000, including $8,500 in non-cash charitable donations we made this year to several organizations. Obviously we're better off taking the standard deduction for 2023, but I'm wondering what happens to those charitable donations? Can I somehow carry those forward into our 2024 tax return (like if we donate another $8,000 next year, could we claim $16,500 total)? Or is it just "use it or lose it" meaning if we don't itemize this year, those donations just disappear for tax purposes? Our household income is around $380k, so we're not hitting any AGI limitations that would automatically allow for carryover. Just trying to figure out if there's a way to get the tax benefit from our generosity or if it's just gone since we're taking the standard deduction.
23 comments
Join the conversation
Mia Rodriguez
This is a great question! For most people, charitable donations are indeed "use it or lose it" in the year you make them. If you take the standard deduction instead of itemizing, you generally can't carry forward those unused charitable deductions to future years. The exception is if your charitable contributions exceed 60% of your AGI (Adjusted Gross Income) in a single year. Only then would you be allowed to carry forward the excess amount for up to 5 years. But since your income is $380k and your charitable donations are $8,500, you're well below that threshold. So unfortunately, if you take the standard deduction for 2023, you won't be able to use those charitable deductions in future years. They essentially "disappear" for tax purposes. This is why some people practice "bunching" - where they concentrate several years of charitable giving into a single year to exceed the standard deduction and itemize just for that year.
0 coins
Jacob Lewis
•What if I donated appreciated stock instead of cash/goods? Would that change anything about the carry-forward rules? I've heard there are special rules for stock donations.
0 coins
Mia Rodriguez
•Donating appreciated stock doesn't change the basic carry-forward rules I mentioned. You still can't carry forward charitable deductions simply because you took the standard deduction. The special benefit of donating appreciated stock is that you avoid capital gains tax on the appreciation while still getting a deduction for the full market value. However, your question does remind me of one strategy that might help. If you're over 70½, you could consider making Qualified Charitable Distributions (QCDs) directly from an IRA. These aren't itemized deductions at all - they directly reduce your taxable income regardless of whether you take the standard deduction or itemize.
0 coins
Amelia Martinez
I was in a similar situation last year! I found this amazing tool at https://taxr.ai that helped me optimize my charitable giving strategy. I was trying to figure out if I should bunch all my donations in one year or spread them out, and their software analyzed my specific tax situation and showed me which approach would save more money over a 3-year period. Their charitable donation optimizer actually showed me I was better off bunching donations in alternating years rather than spreading them evenly. This way I could itemize every other year and take the standard deduction in between. The analysis showed I'd save about $3,600 in taxes over 3 years compared to my original approach.
0 coins
Ethan Clark
•How accurate was their recommendation? Did you actually end up saving that much when you filed? I've tried other tax tools before that made big promises but the real results were disappointing.
0 coins
Mila Walker
•Does it work for complicated situations? I've got some restricted stock units that I'm thinking of donating directly to charity before they vest, plus some regular cash donations. Most tools I've tried can't handle the stock aspect properly.
0 coins
Amelia Martinez
•Their recommendation was spot on - I followed their plan and saved about $1,200 in the first year alone, which was actually a bit more than they projected. What impressed me was how it factored in things like the SALT cap and medical expense thresholds that affect whether itemizing makes sense. For complex situations with stock donations, they specifically have modules for analyzing direct stock gifts vs selling and donating cash. It handles RSUs, appreciated securities, and even donor-advised funds if you're looking at that option. I was surprised at how thorough it was - definitely more sophisticated than the basic calculators I've tried before.
0 coins
Mila Walker
Just wanted to follow up about my experience with that https://taxr.ai tool someone mentioned earlier. I was skeptical but decided to try it since I had exactly the RSU donation situation I asked about. I'm honestly amazed - it analyzed my entire tax situation including the restricted stock units and showed me that by donating some appreciated shares I've held for over a year instead of cash, I could save about $4,300 in taxes versus just taking the standard deduction. The interface walked me through exactly how to time my donations to maximize the tax benefit. The coolest part was seeing side-by-side comparisons of different strategies over multiple years. I now have a multi-year plan that alternates between standard deduction and itemizing, timing my bigger donations for maximum impact. Wish I'd known about this years ago!
0 coins
Logan Scott
I had the exact same question last year! After spending THREE DAYS trying to reach the IRS for clarification (busy signals, disconnections, hour-long holds), I found https://claimyr.com which got me connected to an IRS agent in under 20 minutes! You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent confirmed that charitable donations are generally use-it-or-lose-it unless they exceed 60% of AGI. She also mentioned the bunching strategy others talked about and suggested I look at establishing a Donor Advised Fund if I wanted more flexibility in timing deductions vs. actual donations. Seriously saved me so much frustration - I was about to just give up on getting an official answer before I found this service.
0 coins
Chloe Green
•How does this Claimyr thing actually work? Seems impossible they could get you through when the IRS phone lines are completely jammed. What's the catch?
0 coins
Lucas Adams
•Yeah right. I don't believe for a second this actually works. The IRS phone system is deliberately designed to be impenetrable. No way some third party service can magically get through when millions of taxpayers can't.
0 coins
Logan Scott
•It works by using an automated system that continuously redials and navigates the IRS phone tree until it gets through to a human. When it connects, you get a call back to join the conversation. There's no special access - they're just doing the tedious waiting and navigating for you. There's no magic to it - just technology handling the frustrating part. They don't speak to the IRS on your behalf or anything like that. They just get you connected and then you handle your own tax questions directly with the agent. I was skeptical too until I tried it and was talking to someone in about 15 minutes after weeks of failed attempts on my own.
0 coins
Lucas Adams
OK I need to publicly eat my words about that Claimyr service. After posting my skeptical comment, I decided to try it anyway because I was desperate to resolve an issue with a missing tax credit. It actually worked exactly as described. The system called me back in about 27 minutes (they estimated 20-40), and I was connected immediately to an IRS customer service rep. Completely skipped the usual hour-plus hold time. The agent answered my question about carrying forward charitable deductions (confirmed it's use-it-or-lose-it unless exceeding 60% of AGI) and also helped resolve my tax credit issue. For anyone struggling with the charitable deduction question like the original poster - the official word is you can't carry forward unless you hit that AGI limit. Time to look at bunching strategies!
0 coins
Harper Hill
Has anyone tried using a Donor Advised Fund (DAF) for this situation? I contribute a larger sum in one year to get over the standard deduction threshold, take the full tax deduction that year, but then distribute the actual donations to charities over several years. Seems like it might be perfect for OP's situation.
0 coins
Caden Nguyen
•We set one up two years ago and it's been fantastic. Contributed enough appreciated stock to itemize that year, took the full deduction, and now we send grants to our favorite charities whenever we want. Plus the remaining balance continues to grow tax-free. Would definitely recommend looking into it!
0 coins
Avery Flores
•Is there a minimum amount needed to start a DAF? And are there ongoing fees that eat into what eventually goes to charity? I've heard mixed things about whether they're worth it for "regular" people vs the ultra-wealthy.
0 coins
Harper Hill
•DAFs have become much more accessible in recent years. Many can be started with as little as $5,000 initial contribution, which is perfect for the "bunching" strategy we're discussing. As for fees, they vary by provider but typically include an administrative fee (often around 0.6% annually) plus the investment fees of whatever funds your contribution is invested in while waiting to be distributed. Fidelity, Schwab and Vanguard all offer lower-cost options compared to community foundations. For most people implementing a bunching strategy, the tax savings far outweigh the fees, especially if you're donating appreciated assets.
0 coins
Zoe Gonzalez
The tax code is so frustrating. I donated $5k to my alma mater and $3k to a local food bank, but because of the stupid standard deduction I basically get zero tax benefit. Meanwhile billionaires get all kinds of write-offs. The whole system is designed for the ultra-wealthy.
0 coins
Ashley Adams
•True, but remember that the higher standard deduction does benefit a lot of middle-class taxpayers who don't have to go through the hassle of itemizing anymore. Before the tax law changes, I had to keep track of every little donation receipt. Now I just take the standard deduction and it's actually more than I used to itemize.
0 coins
Alexis Robinson
Has anyone looked into the IRA Qualified Charitable Distribution option? If you're over 70.5 years old, you can donate directly from your IRA to a charity and it counts toward your Required Minimum Distribution without increasing your taxable income. You don't itemize it because it's never counted as income in the first place. Might be something to consider for older taxpayers facing this issue.
0 coins
Mason Davis
•That's a really helpful suggestion, but unfortunately not applicable in my case yet - I'm only 42. But definitely something to keep in mind for the future or for others reading who might be in that age bracket!
0 coins
Ruby Blake
I completely understand your frustration! I was in almost the exact same situation last year with about $7,200 in charitable donations but only $23,500 total itemized deductions. After researching extensively, I can confirm what others have said - those charitable deductions are essentially "lost" for tax purposes if you take the standard deduction. There's no carryforward provision unless you exceed 60% of your AGI (which at $380k would be $228k in donations - way more than your $8,500). However, I did learn about the "bunching" strategy that's been mentioned. Instead of donating $8,500 every year, you could potentially donate $17,000-20,000 in alternating years. This way you'd itemize every other year (assuming your other deductions stay consistent) and take the standard deduction in the off years. With your income level, you might also want to consider donating appreciated stock or mutual funds instead of cash if you have any. You avoid capital gains tax AND get the full market value deduction. Just make sure you've held the securities for more than a year to get long-term capital gains treatment. The Donor Advised Fund suggestion is also worth exploring - it lets you make a large contribution in one year for the tax benefit, then distribute to charities over multiple years as you see fit.
0 coins
Zoe Stavros
•This is such a comprehensive summary of all the strategies discussed - thank you! As someone just starting to navigate this charitable deduction maze, the bunching approach you mentioned really makes sense mathematically. One follow-up question: when you bunch donations in alternating years, do you actually time the donations themselves or just accelerate payments? For example, if I normally donate monthly to certain organizations, would I literally skip a year of donations and then double up the following year? Or could I continue regular giving but prepay next year's donations in December to bunch them into the current tax year? I'm wondering about the practical logistics since some of my donations are recurring monthly commitments to local nonprofits that rely on steady funding.
0 coins