Yes. New incentives expanded for tax year through December 31, 2020:
- Charitable tax deduction created for non-itemizing taxpayers to donate up to $300 cash
- Itemizing taxpayers can deduct cash donations up to 100% of AGI
- Corps incentivized to donate up to 25% of their income
The time-limited tax provision offers special advantages to 2020 donors for charitable giving. Taxpayers who don't itemize deductions may take a charitable deduction of up to $300 for cash contributions made in 2020 to qualifying organizations. For the purposes of this deduction, qualifying organizations are those that are religious, charitable, educational, scientific or literary in purpose. The law changed in this area due to the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Updates on COVID package as of January 7, 2021:
- Reestablishes an above-the-line universal charitable deduction for non-itemizers, for cash gifts only up to $300.
- Adds a $600 deduction for couples filing jointly.
- Extends through 2021 the increased limits on deductible charitable gifts for itemizers and corporations.
Learn more about how the CARES Act changes deducting charitable donations.