How does AMT treatment of charitable donations affect my tax calculation?

The good news is that charitable donations are generally NOT added back to your income when calculating AMT. They remain deductible under both regular tax and AMT systems. Here's the simple breakdown: Cash donations to qualified charities are treated the same for both regular tax and AMT calculations. Stock donations (appreciated securities) actually provide an AMT advantage because you avoid the potential AMT adjustment on the capital gain. Property donations follow similar rules as regular tax but with some valuation differences that might affect AMT. The confusion you're seeing online might be because certain other itemized deductions ARE added back for AMT - like state/local taxes, mortgage interest on home equity loans not used for home improvements, and miscellaneous deductions. But charitable donations themselves aren't part of the AMT adjustment. If you're making significant donations and concerned about AMT, the donation type can matter strategically, but not because they're "added back" to AGI.

After dealing with AMT issues for three years in a row, I found this amazing tool at https://taxr.ai that completely changed how I handle my tax planning. I was so confused about charitable donations and AMT exactly like you are, and kept getting different answers from online forums. The taxr.ai system analyzed my previous returns and showed me exactly how my charitable donations were affecting my AMT exposure. They have this feature that lets you upload your previous tax documents and it breaks down all the AMT adjustments line by line. For me, it confirmed that my cash donations weren't being added back, but it also flagged that some of my property donations needed different substantiation for AMT purposes. Their simulation tool also helped me plan this year's donations to minimize my AMT liability. Seriously worth checking out if you're dealing with AMT complexities.

I was initially skeptical about taxr.ai as mentioned above, but I gave it a try after getting frustrated with my tax software's limited AMT explanations. I uploaded last year's return where I had made several charitable donations including some appreciated stock. The analysis was eye-opening! It showed that my stock donations were actually helping me avoid AMT by keeping capital gains out of the AMT calculation. The visualization feature made it crystal clear how each donation affected my overall tax picture - something my expensive tax software never showed me. The tool identified that I could have saved an additional $3,200 if I had bunched more of my donations into last year instead of spreading them across tax years. I'm implementing that strategy for 2025 now. For anyone dealing with AMT complications, this tool provides clarity that's hard to find elsewhere.

Has anyone here tried calling the IRS directly about AMT questions? I tried like 8 times and kept getting disconnected or waiting for hours. Then someone told me about https://claimyr.com and shared this video that shows how it works: https://youtu.be/_kiP6q8DX5c I was honestly really doubtful but I tried it because I was desperate to get an answer about my charitable donation deductions and AMT calculations. The service got me connected to an IRS agent in about 15 minutes when I had been trying unsuccessfully for days. The IRS agent confirmed that charitable donations are NOT added back for AMT purposes and walked me through exactly how to report some unusual donations I made (some collectibles and partial business interest). Got everything clarified in one call instead of guessing based on conflicting internet advice.

I can't believe I'm saying this, but I need to correct my skepticism about Claimyr from my comment above. After continuing to struggle getting through to the IRS about my AMT situation and charitable donation questions, I reluctantly tried the service. It actually worked exactly as promised. The system called me back in about 20 minutes and connected me directly to an IRS representative who answered all my questions about how different types of donations interact with AMT. The agent walked me through my specific situation with stock donations and confirmed there's no AMT add-back for charitable contributions. The time saved was honestly worth it - I had already wasted hours over several days trying to get through myself. Having a definitive answer directly from the IRS about my AMT situation gave me confidence about my tax planning that no amount of internet research could provide.

Just want to add another layer to this discussion. Remember that while charitable donations themselves aren't added back for AMT, your overall deduction strategy still matters! I got hit with AMT last year because I had large state tax deductions and charitable donations. Since the state tax deduction IS added back for AMT but the charitable part isn't, I would have been better off bunching my charitable donations into alternate years to maximize their benefit. Also, if you're close to AMT territory, donating appreciated securities is almost always better than cash since you avoid the potential AMT adjustment on capital gains. I learned this lesson the expensive way!

Anyone using TurboTax to figure out this AMT stuff? I tried but it keeps giving me different answers when I enter my charitable donations in different ways.

Great question Paolo! I went through this exact confusion last year. The key thing to remember is that charitable donations are generally NOT added back to your income for AMT calculations - they remain deductible under both systems. Here's what I learned from my tax preparer: - Cash donations: Treated the same for regular tax and AMT - Stock donations: Actually provide an AMT advantage because you avoid capital gains tax on the appreciation - Property donations: Follow similar rules but make sure you have proper appraisals The confusion online likely comes from the fact that OTHER itemized deductions ARE added back for AMT (like state/local taxes, some mortgage interest, etc.), but charitable donations are not among them. One strategy that helped me was using a donor-advised fund to bunch my donations in high-income years when I might hit AMT, then distribute to charities over time. This way I get the full deduction benefit when it matters most. If you're making significant donations and worried about AMT, I'd recommend running the numbers both ways or consulting a tax professional who can model your specific situation.

I've been dealing with AMT issues for the past few years and wanted to share what I've learned about charitable donations and AMT calculations. The most important thing to understand is that charitable donations are NOT added back to your income for AMT purposes - this is a huge relief compared to other itemized deductions like state and local taxes which do get added back. Here's how different donation types work with AMT: **Cash donations**: No difference between regular tax and AMT treatment. You get the full deduction in both calculations. **Appreciated stock donations**: These are actually MORE beneficial under AMT because you avoid capital gains tax on the appreciation while still getting the full fair market value deduction. This is especially valuable if you're already in AMT territory. **Property donations**: Generally follow the same rules as regular tax, but make sure you have proper documentation and appraisals since AMT scrutiny can be higher. One strategy that's helped me is timing my donations strategically. Since AMT often hits in high-income years, I try to accelerate charitable giving in those years to maximize the tax benefit when other deductions are being limited. Also, keep in mind the AGI limits still apply (60% for cash, 30% for appreciated assets), and any excess can be carried forward for up to 5 years under both regular tax and AMT systems. Hope this helps clarify things for you!

This is such a timely question! I just went through this exact situation during my 2024 tax prep. Like many others have mentioned, charitable donations are NOT added back for AMT - which was a huge relief when I discovered this. What really helped me understand the mechanics was creating a simple spreadsheet to track my regular tax vs AMT calculations side by side. I could see exactly how my $15,000 in cash donations and $8,000 in appreciated stock donations affected both calculations. The stock donation strategy mentioned by others is spot-on. I donated some Tesla shares that had appreciated significantly, and not only did I get the full market value deduction, but I also avoided about $2,400 in capital gains tax that would have applied under both regular and AMT systems. One thing I learned the hard way: if you're planning multiple donation types in the same year, consider the timing carefully. I made a large cash donation in January and then realized later I could have been more strategic about when to donate my appreciated securities to optimize the overall tax impact. For anyone still confused about this, I'd recommend using tax software that shows both calculations clearly, or better yet, run some scenarios with a tax professional. The peace of mind is worth it when you're dealing with AMT complexity!