Temporary Suspension of Limits on Charitable Contributions
In most cases, the amount of charitable cash contributions taxpayers can deduct on Schedule A as an itemized deduction is limited to a percentage (usually 60 percent) of the taxpayer’s adjusted gross income (AGI). Qualified contributions are not subject to this limitation. Individuals may deduct qualified contributions of up to 100 percent of their adjusted gross income. Contributions that exceed that amount can carry over to the next tax year. To qualify, the contribution must be:
- a cash contribution;
- made to a qualifying organization;
- made during the calendar year 2020
Contributions of non-cash property do not qualify for this relief. Taxpayers may still claim non-cash contributions as a deduction, subject to the normal limits.
How to claim this in TaxSlayer Pro Online?
It is a two-step process.
- Report your taxpayers cash gifts to charity just as you normally would within the “Cash Gifts to Charity” page within the Itemized Deductions menu.
- If their donations qualify to take advantage of this temporary suspension of limitations, after completing Step 1 above, go to the “Limitation on Charitable Contributions Deduction page (shown below) and enter the qualified contributions.
