Are you itemizing deductions?
Contributions to public charities are generally limited to a percentage of a taxpayer’s adjusted gross income (AGI). For individuals who itemize, the new law lifts the cap on deductions for annual contributions from 60 percent to 100 percent of AGI for cash gifts to public charities in 2020. Any excess contributions available can be carried over to the next five years.
(Note: Gifts made to Donor Advised Funds (DAFs) do not qualify for the increased deduction.)
Taxpayers who claim the standard deduction – rather than itemizing their deductions – will be able to claim an above-the-line charitable tax deduction of up to $300 for cash donations made in 2020.
(Note: This deduction applies only to qualified cash contributions and does not apply to cash contributions made to DAFs or supporting organizations.)
If your situation allows, consider taking advantage of the $300 charitable deduction by making a gift to one of UNLV’s Student Emergency Assistance Fund or any other fund of your choice from this payment.
Interested in corporate giving?
For corporations, the deduction limit has been raised from 10 percent to 25 percent of taxable income in 2020 for cash gifts to public charities.