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CARES Act: Important Tax Information

Coronavirus Aid, Relief, and Economic Security Act (CARES Act) includes charitable provisions.

  • For those who do not itemize:
    • You can now claim an “above the line” deduction of $300 in 2020.
    • Gifts need to be cash to a qualified charity, so donor advised fund gifts are not eligible.
    • Gifts made since Jan. 1 count toward the $300 maximum above the line deduction.
  • For those with more substantial philanthropic capacity:
    • The CARES act suspends the previous 60% adjusted gross income (AGI) deduction limitation on charitable cash contributions.
    • Now in 2020, you can deduct qualified cash contributions up to 100% of AGI.
    • Qualified contributions in excess of this can be carried over to future years, just like in the past.

These gifts must be to qualified public charities, so private foundations, supporting organizations, or donor advised funds do not qualify.

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