Charitable Giving Incentives(p4)

Qualified contributions are not subject to the overall limit on itemized deductions or the 50% of adjusted gross income (AGI) limit. A qualified contribution is a charitable contribution paid in cash or by check to a 50% limit organization if you make an election to have the 50% limit not apply to these contributions.

A qualified contribution must also meet all of the following requirements.

• Be paid after May 1, 2008, and before January 1, 2009.
• The contribution must be for relief efforts in one or more Midwestern disaster areas.
• Documentation must be provided by the donee organization that the contribution was used (or will be used) for relief efforts in one or more Midwestern disaster areas.

Your deduction for qualified contributions is limited to your AGI minus your deduction for all other charitable contributions. You can carry over any contributions you are not able to deduct for 2008 because of this limit. In 2009, the carryover of your unused qualified contributions is subject to the 50% of AGI limit.

Qualified contributions do not include contributions to certain private foundations described in section 509(a)(3) or contributions for the establishment of a new, or maintenance of an existing, donor advised fund.

A corporation can elect to deduct qualified cash contributions without regard to the 10% of taxable income limit if the contributions were paid after May 1, 2008, and before January 1, 2009, to a qualified charitable organization (other than certain private foundations described in section 509(a)(3) or contributions for the establishment of a new, or maintenance of an existing, donor advised fund), for relief efforts in one or more Midwestern disaster areas. Documentation must be provided by the donee organization that the contribution was used (or will be used) for relief efforts in one or more Midwestern disaster areas. The corporation's deduction for these qualified contributions is limited to 100% of taxable income (as modified for the 10% limit) minus the corporation's deduction for all other charitable contributions. Any qualified contributions over this limit can be carried over to the next 5 years, subject to the 10% of taxable income limit.

Each partner in a partnership and each shareholder in an S corporation must make a separate election to have the appropriate limit not apply.

For more information, see Publication 526 or Publication 542, Corporations. Publication 526 includes a worksheet you can use to figure your deduction if any limits apply to your charitable contributions.

This benefit applies only to the counties in Table 1. 
 

The following are special standard mileage rates in effect for 2008 for the cost of operating your vehicle for providing charitable services related only to the severe storms, tornadoes, or flooding.

• 36 cents per mile for the period beginning on the applicable disaster date through June 30, 2008.
• 41 cents per mile for the period July 1 through December 31, 2008.

This benefit applies only to the counties in Table 1. 
 

You can exclude from income amounts you receive as mileage reimbursements for the use of a private passenger vehicle for the benefit of a qualified charitable organization in providing relief related to the severe storms, tornadoes, or flooding during the period beginning on the applicable disaster date, and ending on December 31, 2008. You cannot claim a deduction or credit for amounts you exclude. You must keep records of miles driven, time, place (or use), and purpose of the mileage. The amount you can exclude cannot exceed the standard business mileage rate (shown below) for expenses incurred during the following periods.

• 50.5 cents per mile for the period beginning on the applicable disaster date through June 30, 2008.
• 58.5 cents per mile for the period July 1 through December 31, 2008.