What is the maximum allowable percentage for cash contributions according to AGI rules?

The maximum allowable percentage for cash contributions according to the Adjusted Gross Income (AGI) rules is 60%. This percentage applies to cash donations made to qualifying public charities and certain private foundations, allowing taxpayers to deduct cash contributions that do not exceed 60% of their AGI in the year they are made.

The increase to this 60% limit reflects the IRS's efforts to encourage charitable giving, particularly in the context of recent tax reforms and disaster relief provisions that expanded the deductibility of cash contributions. It's important to note that while certain types of contributions have different limits, cash gifts to eligible charities maintain this higher deduction rate, making them more advantageous for donors when calculating their tax liabilities.

Understanding these limits is crucial for taxpayers seeking to maximize their charitable contributions and minimize their taxable income.