As an individual itemizing your deductions, CARES removes the 60% of adjusted gross income (AGI) limitation for most cash gifts. For cash contributions to charity in 2021, a donor is now able to offset up to 100% of adjusted gross income with charitable contributions. For example, this means that an individual who earns $100,000 could donate his/her entire income, claim a $100,000 charitable deduction, and have no taxable income in 2021.

If you are not itemizing deductions and filing single/separately, the CARES Act allows an “above-the-line” total cash deduction for charitable cash gifts of $300. New in 2021 is the ability for those filing jointly and not itemizing to take a total cash deduction for gifts of up to $600.

These new increased limits apply for years 2020 and 2021, and are for cash donations only.