Universal Federal Tax Deduction

What is the Universal Federal Tax Deduction?

The Coronavirus Aid, Relief, and Economic Security (CARES) Act signed on March 27, 2020 includes a NEW available Federal Tax Deduction for charitable contributions for Tax year 2020. The new law was designed to provide relief for nonprofits.


This is available only to people who do not itemize and take the Standard Deduction $12,400 (individual) or $24,800 (married, filing jointly). It is in addition to the Standard Deduction and is an “above the line” adjustment to income that will reduce the adjusted gross income, and thereby reduce taxable income. The new deduction is for donations up to $300 per taxpayer ($600 for a married couple filing jointly).


This is not the same as donating through the Arizona Charitable Tax Credit, which applies a credit to only your AZ State Taxes. This is a deduction for Federal taxable income.