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Coronavirus Aid Relief and Economic Security (CARES) Act Tax Deductions

Coronavirus Aid Relief and Economic Security (CARES) Act Tax Deductions

The stimulus bill recently passed by Congress included some tax incentives to inspire giving during the pandemic.

If you itemize your deductions . . . 

In a typical year, individuals who itemize their charitable donations can only take a charitable deduction of up to 60 percent of their adjusted gross income (AGI), no matter how much they give. For cash contributions made in 2020, donors can elect to deduct up to 100% of their AGI. Donations to donor-advised funds and supporting organizations don’t qualify.

If you don’t itemize your deductions . . . 

In 2020, taxpayers who do not itemize their deductions can take a one-time deduction of up to $300 for gifts made to charitable organizations. The deduction is only for gifts of cash made this calendar year. Other types of gifts or contributions made to donor-advised funds or private foundations don’t qualify.