The CARES Act has increased the deduction limit on cash charitable donations from 60% to 100% of adjusted gross income (note that the contributions must be to public charities or churches, not private foundations or donor-advised funds). Contributions of most non-cash assets remain limited to 30% of adjusted gross income. For taxpayers who do not itemize their deductions, up to $300 of charitable contributions are allowed to be deducted for 2020.
This article was originally published in News & Views (Dean Dorton’s quarterly newsletter).