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CARES Act Guidelines

The CARES Act passed on March 27th, 2020 encourages charitable contributions by increasing the annual limit on deductions for charitable contributions by individuals who itemize, as well as corporations.

  • For individuals, the 50-percent of adjusted gross income limitation is suspended for 2020.
  • For corporations, the 10-percent limitation increases to 25 percent of taxable income. Food donation limitations increases to 25 percent of taxable income, up from the current 15 percent cap.

This provision also permits taxpayers to contribute to churches and charitable organizations by permitting them to deduct up to $300 of cash contributions. The incentive applies to contributions made in 2020 and would be claimed on tax forms next year.