You may be able to decrease your taxable income in 2020 through The CARES Act. The law allows taxpayers who do not itemize deductions to take up to a $300 deduction for a cash contribution made to qualifying organizations such as the American Indian College Fund in 2020. In previous tax years and normal tax rules, you cannot deduct charitable donations unless you itemize deductions.
For those who do itemize deductions, the CARES ACT has suspended limits on charitable contributions for the tax year 2020. This year taxpayers can deduct donations for up to 100% of their adjusted gross income. Previously the rules allowed deductions up to 60% of your income.
For those in a position to do so, one can give up to 100% of their income and owe zero in taxes.
Donations must be made by midnight, December 31, 2020.
