The New Charitable Deduction for Nonitemizers

The New Charitable Deduction for Nonitemizers

Congress included a provision in the Coronavirus Aid, Relief, and Economic Security (CARES) Act intended to provide some relief for charitable organizations, who are seeing a decline in contributions due to the recent economic turmoil.  The CARES Act permits eligible individuals who do not itemize deductions to deduct $300 of qualified charitable contributions as an "above-the-line" deduction, i.e., as an adjustment in determining adjusted gross income (AGI), for tax years beginning in 2020.  Any amount that exceeds the $300 limit may not be carried forward to future tax years or claimed as an itemized deduction.

Charitable contributions must be made in cash; contributions of noncash property are not allowed as an above-the-line deduction.  However, these contributions are still available for individuals who itemize their deductions.

If you have any questions regarding the new charitable deduction for nonitemized-taxpayers, please feel free to reach out to one of the many trained tax professionals at Bormel, Grice & Huyett, P.A.

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The Cultural Alliance of Greater Washington has worked with Bormel, Grice & Huyett, P.A., since 1988. Their knowledge of the arts and the arts community make their services invaluable. They can translate accounting terminology into a comprehensive language. For many organizations, the accounting firm of Bormel, Grice & Huyett provides the financial "information bridge." We whole-heartedly recommend Bormel, Grice & Huyett, excellent accountants who care about our arts organizations.
Jennifer Cover Payne, Executive Director, Cultural Alliance of Greater Washington

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