The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which was signed into law at the end of March has several implications for charitable giving in 2020.
* If you do not itemize deductions, you may nonetheless take an “above-the-line” deduction for up to $300 in cash gifts you make to St. Veronica this year.
* If you do itemize, you may deduct up to the entire amount of your adjusted gross income (AGI) for cash gifts you make in 2020, without reference to the 60 percent limitation that would otherwise apply. (If you also make noncash gifts, which are subject to lower AGI limitations, or if you have carryforwards from noncash gifts made in prior years, you can still take advantage of the temporary “unlimited” deduction for cash gifts, without losing a carryforward year for those items. Excess cash gifts will simply be carried forward to 2021.)
* The limitation on deductions for cash contributions by corporations has also been temporarily increased, from 10 percent of taxable income to 25 percent.