CARES Act $300 Above-The-Line Charitable Deduction
Updated: May 5
Down East Hospice Volunteers relies on donations to support compassionate care services in Washington County. The organization does not receive any federal or state funding. We were excited to learn the CARES Act adds a new above-the-line deduction, available in 2020 and future years, for up to $300 of cash contributions made to a qualified charitable organization when taking the standard deduction.
The CARES Act lifts the 60% of AGI limit for cash donations made in 2020 (although there's still a 100% of AGI limit on all charitable contributions). That means itemizers (Schedule A) can deduct more of their charitable cash contributions this year, which will hopefully boost charitable giving. As with the new above-the-line deduction, donations to donor advised funds and supporting organizations don't count.
Please seek out the advice of your tax accountant regarding these new rules for 2020 and beyond.