The Coronavirus Aid, Relief, and Economic Security (CARES) Act added an above-the-line tax deduction for 2020. Taxpayers who make a qualified charitable contribution and who do not itemize their deductions using Schedule A may be eligible for a deduction from the calculation of gross income. The deduction amount may be up to $300. A charitable contribution is qualified under the CARES Act if it is made in cash to a qualified organization and is not made payable to a Donor Advised Fund.
The Taxpayer Certainty and Disaster Tax Relief Act of 2020 expanded on this provision of the CARES Act by allowing up to $600 in an above-the-line charitable deduction for married individuals filing joint returns. The provision was also extended through the end of 2021.
Please note that this above-the-line charitable deduction is not currently permitted in 2022 and thereafter.
Editor’s Note: This article was originally published on May 20th, 2020. It has been updated on January 23rd, 2022 to reflect current applicability for 2022.