Summary of the Allowance for Partial Above the Line Deduction for Charitable Contributions
Below is a summary of one of the provisions of Title II - Rebates and Other Individual Provisions and Business Provisions from the Coronavirus Aid, Relief and Economic Security Act (CARES Act).
Summary
- Allows for above the line charitable deductions up to $300 for tax years after December 31, 2019.
Detailed Analysis
Charitable Contributions
For tax years beginning in 2020, a taxpayer who does not itemize deductions may deduct up to of $300 for charitable contributions in calculating the taxpayer's adjusted gross income. Generally, charitable contributions are itemized deductions after adjusted gross income is determined for a taxpayer. A charitable contribution for this purpose:
- Must be made in cash;
- Must be made to an organization described in IRC § 170(b)(1)(A);
- Cannot be made to a supporting organization under IRC § 509(a)(3) or to a donor advised fund; and
- Cannot be a carryover from a charitable contribution in previous years;
Timing
This applies to tax years beginning after December 31, 2019.
This publication is intended for general information purposes only and does not and is not intended to constitute legal advice. The reader should consult with legal counsel to determine how laws or decisions discussed herein apply to the reader’s specific circumstances.