Non-itemizers can claim an above-the-line deduction of up to $300.
- If you don't itemize deductions on Schedule A, you can take both the standard deduction and an additional deduction for up to $300 in cash donations.
- The donations must be made to IRS-qualified charities - those with 501(c)(3) status.
- The $300 deduction is per return . (Couples who file jointly can deduct only $300,not $600.)
The charitable cash donation limit of 60% of adjusted gross income is suspended for 2020.
Read full post...
- The suspension applies only to charitable cash donations made in 2020 and deducted on your 2020 Schedule A.
- Contribution carryovers from prior years do not qualify for this increased limit.
- If you've been thinking about making a large cash donation to a charity, this may be the year to do so, from an income tax perspective. Please
discuss this with your investment advisor and our firm.