New Charitable Contribution Tax Breaks in 2020

There are several new tax breaks for charitable donations in 2020. Here are three changes to help your favorite charity while receiving a tax break:

#300 charity deduction without itemizing

You can claim an above­ the-line deduction of up to $300 for cash donations to qualified charities. In other words, you get a deduction whether you itemize or not.

Donate up to 100% of your income

You can donate as much of your 2020 income as you feel like giving. The annual deduction for monetary donations is normally limited to 60% of your income, but this has increased to 100% in 2020.

Businesses can contribute more!

A business can give up to 25% of its taxable income, an increase from the normal threshold of 10%. Businesses also qualify for a special enhanced deduction for gifts of food from 15% of taxable income to 25%.

Item 2020 2019 Change
single $12,400 $12,200 +$200
Married Joint/Widow 24,800 18,650 +$400
Head of Household 18,650 18,350 +$300
Married Filing Separate 12,400 12,200 +$200
Elderly/Blind: Married +$1,300 +$1,300
Elderly/Blind: Unmarried +$1,650 +$1,650

Mileage Rates

Item 2020 2019 Change
Business 57.5¢/mi 58.0¢/mi -0.5¢
Medical/Moving 17.0¢/mi 20.0¢/mi -3.0¢
Business 14.0¢/mi 14.0¢/mi

Section 179 Maximums

Limits 2020 2019 Change
Section 179 $1.04 million $1.02 million +$20,000
Property Limit $2.59 million $2.55 million +$40,000

Maximum Earned Income Credit

2020 2019 Change
No Child $538 $529 +$9
1 Child 3,584 3,526 +$58
2 Children 5,920 5,828 +$92
3+ Children 6,660 6,557 +$103