The CARES (Coronavirus Aid, Relief and Economic Security) Act, signed into law on March 27, 2020, includes several provisions of particular interest to individuals (and corporations) who may be considering charitable donations in tax year 2020. We’ve outlined some important changes of the law (H.R. 748-55 to 748-66) that may benefit you. Before acting on any of the provisions highlighted here, please consider discussing them with your professional advisors to determine their applicability to your individual tax situation.

$300 Charitable Deduction for All

Even if you do not itemize deductions on your taxes, your gift can reduce your 2020 taxable income by up to $300 ($600 for couples). This is a special benefit for 2020 to encourage giving to causes that are impacted by the COVID-19 crisis. (H.R. 748-65; Sec. 2204)

100% Deduction Allowance for Cash Gifts to Charities

For the 2020 tax year only, individuals may deduct cash gifts up to 100% of their adjusted gross income (AGI) compared to the typical 60% allowance. (H.R. 748-65; Sec. 2205)

Cash Contribution Limit from Corporations Increased to 25% in 2020

The taxable income limit that applies to cash contributions made by corporations is increased from 10% to 25% for 2020. The usual 10% limit still applies to other charitable contributions by corporations, and those contributions reduce the 25% limit dollar-for-dollar. Qualified cash contributions in excess of the 25% limit can be carried forward for up to five years under the usual limits.

You can help with the University’s efforts related to COVID-19 with a gift to the USF Fund. The USF Fund supports the University’s ongoing operating needs and allows USF to quickly address immediate campus needs. This includes scholarships, new equipment for the classrooms, technology advancements, and can also assist in any additional emergency needs related to COVID-19.