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Charitable Cash Donations - 2 new rules for 2020 only

Non-itemizers can claim an above-the-line deduction of up to $300.

  • If you don't itemize deductions on Schedule A, you can take both the standard deduction and an additional deduction for up to $300 in cash donations.
  • The donations must be made to IRS-qualified charities - those with 501(c)(3) status.
  • The $300 deduction is per return . (Couples who file jointly can deduct only $300,not $600.)

The charitable cash donation limit of 60% of adjusted gross income is suspended for 2020.

  • The suspension applies only to charitable cash donations made in 2020 and deducted on your 2020 Schedule A.
  • Contribution carryovers from prior years do not qualify for this increased limit.
  • If you've been thinking about making a large cash donation to a charity, this may be the year to do so, from an income tax perspective. Please discuss this with your investment advisor and our firm.

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