CARES Act Charitable Gift Deductions

Charitable Giving Benefits Set to Expire on December 31, 2020

Unless Congress acts to extend some or all of the provisions discussed below, they will sunset on December 31, 2020.

1. The $300 Universal Charitable Deduction: Taxpayers who do not itemize their deductions can claim an "above the line" charitable deduction of up to $300 for cash donations in 2020. This opportunity applies to both single individuals and a married couple filing jointly.

2. The 100% AGI Deduction: For cash gifts in 2020, the CARES Act allows you to deduct it to the extent of your entire adjusted gross income (AGI). In 2021 the tax deduction for cash contributions will be reduced from 100% to 60% of your AGI. To take advantage of this limited opportunity, you may want to consider accelerating payment of an outstanding pledge.

3. 25% Corporate Gifts Deduction: If you are a decision-maker for a corporation and can make a larger-than-usual gift to address current needs of a charity you support, the deduction limit for cash contributions from corporate donors has been raised from 10% to 25% of taxable income.

 

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