The IRS has made up some new fun just for 2020. Donate cash, to make use of two new tax rules that apply only for 2020. Nonitemizers can claim an above-the-line deduction of up to $300 for charitable cash contributions that they make in 2020.
This means that for 2020, individuals who don’t itemize on Schedule A can take both the standard deduction and a deduction for up to $300 in cash contributions. Note that this extra write-off is per return, meaning couples who file jointly can deduct only $300, not $600.
The 60%-of-AGI limit on charitable gifts of cash by individuals is suspended. Gifts to donor-advised funds and private nonoperating foundations are excluded. The relief applies only to charitable cash contributions that you make this year and deduct on Schedule A of the 2020 Form 1040 or 1040SR that you file in 2021.Carryovers of excess charitable contributions from prior years don’t get the break. If you’ve been contemplating a large cash gift to charity, now’s the time to do it.