$300 Tax Deduction
Special $300 tax deduction helps most people give to charity this year – even if they don’t itemize
As part of the Coronavirus Aid, Relief and Economic Security Act, taxpayers who take the standard deduction are allowed an additional above-the-line deduction of up to $300 for charitable donations made in cash. Previously, charitable contributions could only be deducted if taxpayers itemized deductions.
Taxpayers who itemize can deduct up to 100% of their adjusted gross income for cash donations (up from 60%) made in 2020.
These incentives don’t apply to all contributions — only those made to qualifying public organizations, which the IRS defines as “those that are religious, charitable, educational, scientific or literary in purpose.”
Contributions to donor-advised funds, non-operating private foundations and support organizations don’t qualify for this deduction.