The IRS is temporarily suspending limits on charitable cash contributions.
In general, the amount of charitable cash contributions taxpayers can deduct as an itemized deduction on Schedule A is limited to a percentage—usually 60%—of the taxpayer’s adjusted gross income.
Qualified contributions are not subject to this limitation.
Taxpayers may deduct qualified contributions of up to 100% of their adjusted gross income.
A corporation may deduct qualified contributions of up to 25% of its taxable income.
Contributions exceeding that amount can carry over to the next tax year.
To qualify, the contribution must be:
- A cash contribution
- Made to a qualifying organization
- Made during the 2020 calendar year
Contributions of non-cash property do not qualify for this relief.
Taxpayers may still claim non-cash contributions as a deduction, subject to the normal limits.
The IRS provides information on tax help for taxpayers, businesses, tax-exempt organizations, health plans, and others affected by the coronavirus.