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Charitable donations eligible for special tax benefits in 2020

Congress recently passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act that includes several charitable tax provisions. Read below to learn how you can take advantage of these provisions as you plan your 2020 charitable giving.

 

CARES Act Charitable Tax Provisions

  • Tax filers who do not itemize are eligible to claim an "above-the-line" charitable deduction of up to $300 for 2020 and in future years.

  • In 2020 only, donors who make cash contributions to public charities now qualify to deduct up to 100% of their adjusted gross income (AGI) instead of the usual 60%. (You may still carry over any unused deduction for up to five additional years, subject to the traditional 60% AGI limitation.)

  • In 2020 only, corporate giving qualifies for deductions of up to 25% of taxable income (instead of the usual 10%).

  • In 2020 only, required minimum distributions (RMDs) have been waived for individual retirement accounts. However, donors 70½ and older may still make a qualified charitable distribution (QCD) from their IRA of up to $100,000 (or $200,000 from a couple with separate IRAs).

While not affected by the CARES act, gifts from Donor Advised Funds are welcome and are a great way to make charitable contributions without affecting your financial security. For more information about how the CARES Act may impact your specific financial situation, please consult with your tax, legal, or financial advisors.