As 2020 quickly moves towards the finish line, you may be making year end charitable contributions. If so, you should be aware that in response to the COVID-19 crisis, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) eases a few of the limitations that ordinarily apply to the tax deduction for charitable contributions.

The CARES Act allows an individual who claims the standard deduction to deduct up to $300 in cash contributions to qualifying charities. This above-the-line deduction is only available for 2020.

In another tax change for 2020 only, for those who itemize deductions, the CARES Act increases the allowable deductions for cash contributions to public charities from 60% to 100% of a taxpayer’s adjusted gross income.  For corporate donors, the limit increases from 10% to 25% of its taxable income.

Note that the deduction limits under the CARES Act do not apply to contributions to a supporting organization or to a new or existing donor-advised fund.

If you have any questions regarding charitable contribution deductions or any matter relating to the CARES Act, contact your FOS attorney.