Here’s how the CARES Act changes deducting charitable contributions made in 2020:
Previously, charitable contributions could only be deducted if taxpayers itemized their deductions. However, taxpayers who don't itemize deductions may take a charitable deduction of up to $300 for cash contributions made in 2020 to qualifying organizations such as Lutheran Church Charities. The law changed in this area due to the Coronavirus Aid, Relief, and Economic Security Act.
For people who do itemize their deductions, the new law allows for cash contributions to qualified charities to be deducted up to 100% of their adjusted gross income (up from 60%) for the 2020 calendar year.
CLICK HERE for more information about these changes.