Understand the deductions that make it easier to donate.
The CARES Act grants taxpayers who take the standard deduction (taxpayers who don’t
itemize their deductions) an “above the line” deduction up to $300 ($600 for a married
couple) in charitable donations given in the 2020 tax year only. For example, if you take
the standard deduction and give $300 to charity, you will reduce your adjusted gross
income (AGI) by $300 and thereby reduce your taxable income. This "above the line" tax
incentive is per tax return.
Itemized & Corporate Deductions
Individuals and corporations that itemize can deduct much greater amounts of their
contributions during the 2020 tax year. Individuals can elect to deduct donations up to
100% of their 2020 AGI (up from 60% previously). Corporations may deduct up to 25%
of taxable income, up from the previous limit of 10%.