CARES Act Expands Charitable Donation Deduction for 2020, May 7, 2020

The CARES Act made several changes designed to encourage charitable giving during the COVID-19 outbreak. For the 2020 tax year, the CARES Act amended IRC Section 62(a), allowing taxpayers to reduce adjusted gross income (AGI) by $300 worth of charitable contributions made in 2020 even if they do not itemize. Under normal circumstances, taxpayers are only permitted to deduct cash contributions to charity to the extent those donations do not exceed 60 percent of AGI (10 percent for corporations). The CARES Act lifts the 60 percent AGI limit for 2020. For more information, visit Tax Facts Online.