If you were a generous giver in 2020, the federal government wants to reward you. Individual taxpayers who use the standard deduction can claim an “above-the-line” deduction of up to $300 for cash contributions made to qualifying charities during 2020. Individuals who itemize may claim up to 100% of their adjusted gross income in 2020 (limits usually range from 20% to 60%). If you’re a business owner, you may have additional charitable deductions you can utilize, including an increased 25% limit for C Corporation cash donations and for qualifying food inventory donations.
