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.Back To List