Donation carryforward

A donation carryforward makes it possible to transfer donation amounts that exceed the maximum tax-deductible amount in the current year to future years. In Germany, the rule is: Up to 20% of the total amount of income can be claimed annually as special expenses for donations (§ 10b EStG).

If this limit is exceeded, the tax benefit is not lost – instead, it can be used in subsequent years. The tax office automatically takes the donation carryforward into account, provided proof is provided and the donation complies with the guidelines.

Example:

Anyone who has a taxable income of €100,000 in 2024 can deduct €20,000 as a donation. An additional donation of €10,000 is not canceled, but can be carried over into 2025 as a donation carryforward.

Important:

Donation carryforwards are particularly relevant for larger individual donations or endowment contributions – for example, in the context of inheritances, company sales, or foundation establishments.