Did you know the CARES Act increased the amount of charitable giving you can deduct on your 2020 taxes? Learn more

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The CARES Act, signed into law on March 27, includes provisions that affect both individual and corporate donors. Specifically:

60% of AGI Limit Suspended for 2020
For the 2020 tax year, individuals can deduct any cash contributions made to qualified charitable organizations, up to 100% of their adjusted gross income (AGI). Deductions for cash donations were previously limited to 60% of the taxpayer’s AGI.

Corporations’ 10% Limit Increased to 25% for 2020
For the 2020 tax year, corporations can deduct up to 25% of the taxpayer’s taxable income for any cash contributions made to qualified charitable organizations. Deductions for cash donations were previously limited to 10% of the taxpayer’s taxable income.

New $300 Deduction for Qualified Charitable Donations
Individuals who take the standard deduction can claim an above-the-line tax deduction for cash donations to qualified charitable organizations, up to $300.

Donor-Advised Funds Not Affected
Deduction limitations for charitable gifts to donor-advised funds, private non-operating foundations, and supporting organizations were not changed under the CARES Act.

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