IRS Tax Tip: CARES Act Changes Deducting Charitable Contributions for 2020 (IRC §170)

The CARES Act allows taxpayers who don’t itemize deductions to take an above-the-line charitable deduction up to $300 for cash contributions made in 2020 to qualifying organizations, the IRS stated. The CARES Act also temporarily suspends limits on charitable contributions and temporarily increases limits on contributions of food inventory, the IRS added. Publication 526 explains how taxpayers claim a deduction for charitable contributions to reduce taxable income. Taxpayers generally can deduct the fair market value of property they donate, as explained in Publication 561. Taxpayers must file Form 8283, Noncash Charitable Contributions, to report noncash charitable contributions if the ...