New Tax Deduction: Those who take a standard deduction (the vast majority) can deduct charitable donations up to $300 total from their adjusted gross income in 2020. This makes your adjusted gross income lower, which means your tax rate may lower.
Expanded Tax Deduction: Those who itemize deductions (about 10%) can now deduct more of their charitable giving cash contributions in 2020. The CARES Act allows charitable cash contributions to be deducted up to 100% of adjusted gross income, with any excess contributions available to be carried over to the next five years. In the past, it was limited to 60% of a taxpayer’s adjusted gross income.
Ask your tax accountant for more details.
