IRS Suspends Charitable Cash Contribution Limits

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.