CARES Act Changes Deducting Charitable Contributions Made in 2020

CARES Act Changes Deducting Charitable Contributions Made in 2020

As is well known, charitable donations to religious institutes may be tax deductible. These deductions basically reduce the amount of taxable income. Previously, charitable contributions could only be deducted if taxpayers itemized their deductions.

However, taxpayers who do not itemize deductions may take a charitable deduction of up to $300 for cash contributions made in 2020 to qualifying organizations. For the purposes of this deduction, qualifying organizations are those that are religious, charitable, educational, scientific or literary in purpose. The law changed in this area due to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). 

The CARES Act also suspends limits on charitable contributions and temporarily increases limits on contributions of food inventory. More information about these changes is available on IRS.gov.