The IRS has suspended its limitations on certain charitable contributions.

The agency announced it is raising the amount of charitable cash contributions taxpayers can deduct on Schedule A as an itemized deduction.

In most cases, that amount is 60% of the taxpayer’s gross adjusted income.

But under the change the IRS announced, qualified contributions will not be subject to the 60% threshold.

Individuals may deduct qualified contributions of up to 100% of their adjusted gross income, and a corporation may deduct up to 25% of its taxable income.

Eligibility

Contributions exceeding that amount can be carried over to next year.

To qualify a contribution must be:

  • A cash contribution
  • Made to a qualifying organization
  • Made during the 2020 calendar year

Non-cash property contributions don’t qualify for this relief, although taxpayers may still claim non-cash contributions as a deduction, subject to the normal limits.

The agency’s website includes information about tax help for taxpayers, businesses, tax-exempt organizations and others—including health plans—affected by the coronavirus.