MaxGhenis · Oct 22, 2026 · Oct 12, 2026 · Oct 12, 2026 · Oct 12, 2026 · Oct 12, 2026
diff --git a/changelog.d/fix-2020-charitable-ald.fixed.md b/changelog.d/fix-2020-charitable-ald.fixed.md
@@ -0,0 +1 @@
+Take the 2020 charitable deduction for non-itemizers (IRC 62(a)(22), Form 1040 line 10b) above the line, capped at $300 for every return as the statute reads, so it reduces adjusted gross income; stop adding the 2020 and 2021 non-itemizer amount to itemized deductions; include the non-itemizer cash charitable deduction in itemization comparisons; and add it back in states that did not adopt it.
diff --git a/policyengine_us/parameters/gov/irs/ald/charitable_contributions/cap.yaml b/policyengine_us/parameters/gov/irs/ald/charitable_contributions/cap.yaml
@@ -0,0 +1,47 @@
+description: The IRS caps the above-the-line deduction for cash charitable contributions by individuals who do not itemize at this amount, based on filing status.
+metadata:
+  propagate_metadata_to_children: true
+  unit: currency-USD
+  period: year
+  label: Above-the-line charitable deduction cap for non-itemizers
+  breakdown:
+    - filing_status
+  reference:
+    # CARES Act sec. 2204 added 26 U.S.C. 62(a)(22) and 62(f) for taxable
+    # years beginning in 2020: "the amount (not to exceed $300) of qualified
+    # charitable contributions made by an eligible individual".
+    - title: Pub. L. 116-136, sec. 2204 (CARES Act)
+      href: https://www.congress.gov/116/plaws/publ136/PLAW-116publ136.pdf#page=65
+    # Pub. L. 116-260, div. EE, sec. 212(c) struck 62(a)(22) and 62(f) for
+    # taxable years beginning after 2020; sec. 212(a) replaced them with the
+    # below-the-line 26 U.S.C. 170(p).
+    - title: "Pub. L. 116-260, div. EE, sec. 212 (Consolidated Appropriations Act, 2021) #page 1888-1889"
+      href: https://www.congress.gov/116/plaws/publ260/PLAW-116publ260.pdf#page=1888
+    # Source conflict: $300 statutory cap versus $150 for separate filers.
+    # Form 1040 line 10b allows $300 a return. The instructions' $150 for
+    # married filing separately has no basis in 62(a)(22) or 62(f), which
+    # cap the deduction at $300 for every eligible individual, so the
+    # statute governs (PolicyEngine statute-first rule, 2026-10-19).
+    - title: 2020 Instructions for Form 1040, line 10b
+      href: https://www.irs.gov/pub/irs-prior/i1040gi--2020.pdf#page=30
+
+SINGLE:
+  2000-01-01: 0
+  2020-01-01: 300
+  2021-01-01: 0
+JOINT:
+  2000-01-01: 0
+  2020-01-01: 300
+  2021-01-01: 0
+SEPARATE:
+  2000-01-01: 0
+  2020-01-01: 300
+  2021-01-01: 0
+HEAD_OF_HOUSEHOLD:
+  2000-01-01: 0
+  2020-01-01: 300
+  2021-01-01: 0
+SURVIVING_SPOUSE:
+  2000-01-01: 0
+  2020-01-01: 300
+  2021-01-01: 0
diff --git a/policyengine_us/parameters/gov/irs/ald/deductions.yaml b/policyengine_us/parameters/gov/irs/ald/deductions.yaml
@@ -33,6 +33,25 @@ values:
     - us_bonds_for_higher_ed
     - specified_possession_income
     - puerto_rico_income
+  # 26 U.S.C. 62(a)(22) (CARES Act sec. 2204) adds the charitable deduction
+  # for non-itemizers in 2020 only.
+  2020-01-01:
+    - loss_ald
+    - self_employment_tax_ald
+    - student_loan_interest_ald
+    - early_withdrawal_penalty
+    - alimony_expense_ald
+    - educator_expense_ald
+    - capped_qualified_tuition_expenses_ald
+    - health_savings_account_ald
+    - self_employed_health_insurance_ald
+    - self_employed_pension_contribution_ald
+    - traditional_ira_deduction
+    - qualified_adoption_assistance_expense
+    - us_bonds_for_higher_ed
+    - specified_possession_income
+    - puerto_rico_income
+    - charitable_contributions_ald
   2021-01-01:
     - loss_ald
     - self_employment_tax_ald

diff --git a/policyengine_us/parameters/gov/irs/deductions/deductions_if_not_itemizing.yaml b/policyengine_us/parameters/gov/irs/deductions/deductions_if_not_itemizing.yaml
@@ -4,7 +4,13 @@ values:
     - standard_deduction
     - qualified_business_income_deduction
     - tuition_and_fees_deduction
+  # The 2020 charitable deduction for non-itemizers is above the line
+  # (charitable_contributions_ald). From 2021 it is taken from adjusted gross
+  # income under 26 U.S.C. 170(p) and 63(b)(4).
   2020-01-01:
+    - standard_deduction
+    - qualified_business_income_deduction
+  2021-01-01:
     - charitable_deduction_for_non_itemizers
     - standard_deduction
     - qualified_business_income_deduction

diff --git a/policyengine_us/parameters/gov/irs/deductions/itemized/charity/non_itemizers_amount.yaml b/policyengine_us/parameters/gov/irs/deductions/itemized/charity/non_itemizers_amount.yaml
@@ -7,49 +7,39 @@ metadata:
   breakdown:
     - filing_status
   reference:
-    - title: 2020 Publication 526 Charitable Contributions
-      href: https://www.irs.gov/pub/irs-prior/p526--2020.pdf#page=2
     - title: 2021 Publication 526 Charitable Contributions
       href: https://www.irs.gov/pub/irs-prior/p526--2021.pdf#page=2
-      # The legal code does not describe the 2020 deduction values 
     - title: 26 U.S. Code § 170 - Charitable, etc., contributions and gifts - (p)
       href: https://www.law.cornell.edu/uscode/text/26/170
     - title: Expanded tax benefits help individuals and businesses give to charity during 2021; deductions up to $600 available for cash donations by non-itemizers
       href: https://www.irs.gov/newsroom/expanded-tax-benefits-help-individuals-and-businesses-give-to-charity-during-2021-deductions-up-to-600-available-for-cash-donations-by-non-itemizers
     - title: H.R.1 - One Big Beautiful Bill Act
       href: https://www.congress.gov/bill/119th-congress/house-bill/1/text
 
+# 26 U.S.C. 170(p) starts in 2021. The 2020 deduction for non-itemizers was
+# above the line (26 U.S.C. 62(a)(22)); see gov.irs.ald.charitable_contributions.
 JOINT:
   2018-01-01: 0
-  2020-01-01: 300
   2021-01-01: 600
   2022-01-01: 0
   2026-01-01: 2_000
 SINGLE:
   2018-01-01: 0
-  # CARES Act §2204: $300 cap for non-itemizing individuals in 2020
-  # (IRS Pub. 526 (2020), p. 2).
-  2020-01-01: 300
   2021-01-01: 300
   2022-01-01: 0
   2026-01-01: 1_000
 SEPARATE:
   2018-01-01: 0
-  # MFS 2020 is $150 per IRS guidance — a MFS couple shares the $300
-  # joint cap ($150 each).
-  2020-01-01: 150
   2021-01-01: 300
   2022-01-01: 0
   2026-01-01: 1_000
 HEAD_OF_HOUSEHOLD:
   2018-01-01: 0
-  2020-01-01: 300
   2021-01-01: 300
   2022-01-01: 0
   2026-01-01: 1_000
 SURVIVING_SPOUSE:
   2018-01-01: 0
-  2020-01-01: 300
   2021-01-01: 300
   2022-01-01: 0
   2026-01-01: 1_000
diff --git a/policyengine_us/parameters/gov/irs/deductions/itemized_deductions.yaml b/policyengine_us/parameters/gov/irs/deductions/itemized_deductions.yaml
@@ -7,21 +7,6 @@ values:
     - medical_expense_deduction
     - casualty_loss_deduction
     - misc_deduction
-  2020-01-01:
-    - charitable_deduction  
-    - charitable_deduction_for_non_itemizers
-    - interest_deduction
-    - salt_deduction
-    - medical_expense_deduction
-    - casualty_loss_deduction
-    - misc_deduction
-  2022-01-01:
-    - charitable_deduction
-    - interest_deduction
-    - salt_deduction
-    - medical_expense_deduction
-    - casualty_loss_deduction
-    - misc_deduction
 metadata:
   unit: list
   label: itemized deductions
diff --git a/policyengine_us/parameters/gov/states/ma/tax/income/ald/disallowed.yaml b/policyengine_us/parameters/gov/states/ma/tax/income/ald/disallowed.yaml
@@ -11,15 +11,21 @@ values:
     - early_withdrawal_penalty # (h)
     - self_employment_tax_ald
     - alimony_income  # is a US ALD only in 2018 through 2025
+    # Massachusetts follows Code 62(a) as in effect on January 1, 2005, so
+    # it does not adopt 62(a)(22) (TIR 20-9, B(6)).
+    - charitable_contributions_ald
   2026-01-01:
     - loss_ald # (c)
     - traditional_ira_deduction # (f)
     - early_withdrawal_penalty # (h)
     - self_employment_tax_ald
+    - charitable_contributions_ald
 metadata:
   unit: list
   period: year
   label: Massachusetts above-the-line deductions disallowed
   reference:
     - title: Mass. General Laws c.62 § 2(d)(1)(A)
       href: https://www.mass.gov/info-details/mass-general-laws-c62-ss-2
+    - title: Massachusetts DOR TIR 20-9, Massachusetts tax implications of the CARES Act, B(6)
+      href: https://archives.lib.state.ma.us/server/api/core/bitstreams/84d51bb2-c47f-4aa5-908a-b534fa72cabe/content#page=6
diff --git a/policyengine_us/parameters/gov/states/mi/tax/income/household_resources_adjustments.yaml b/policyengine_us/parameters/gov/states/mi/tax/income/household_resources_adjustments.yaml
@@ -7,6 +7,20 @@ values:
   # items) and the exclusions from gross income under IRC 135, 137, 931 and
   # 933 (us_bonds_for_higher_ed, qualified_adoption_assistance_expense,
   # specified_possession_income and puerto_rico_income).
+  # In 2020 the charitable deduction for non-itemizers (U.S. Form 1040 line
+  # 10b) is a deduction from adjusted gross income "and therefore Total
+  # Household Resources as well" (Michigan Treasury FAQ).
+  2020-01-01:
+    - educator_expense_ald # line 11, capped per eligible educator
+    - health_savings_account_ald # line 13
+    - self_employment_tax_ald # line 15
+    - self_employed_pension_contribution_ald # line 16
+    - self_employed_health_insurance_ald # line 17
+    - early_withdrawal_penalty # line 18
+    - alimony_expense_ald # line 19a
+    - traditional_ira_deduction # line 20, the deductible amount
+    - student_loan_interest_ald # line 21
+    - charitable_contributions_ald
   2021-01-01:
     - educator_expense_ald # line 11, capped per eligible educator
     - health_savings_account_ald # line 13
@@ -22,6 +36,10 @@ metadata:
   period: year
   label: Michigan household resources adjustments
   reference:
+  - title: Michigan 2020 Individual Income Tax Instructions, MI-1040CR line 30
+    href: https://www.michigan.gov/taxes/-/media/Project/Websites/taxes/Forms/IIT/TY2020/Book_MI-1040_instructions_only.pdf#page=28
+  - title: Michigan Treasury FAQ, charitable contribution deductions from AGI and total household resources (2020 and 2021)
+    href: https://www.michigan.gov/taxes/questions/iit/accordion/covid19-cares/charitable-contribution-deduct556422
   - title: Michigan 2024 Individual Income Tax Instructions, MI-1040CR line 30
     href: https://www.michigan.gov/taxes/-/media/Project/Websites/taxes/Forms/IIT/TY2024/MI-1040-Instructions.pdf#page=33
   - title: Michigan 2025 Individual Income Tax Instructions, MI-1040CR line 30

diff --git a/policyengine_us/parameters/gov/states/mn/tax/income/additions/sources.yaml b/policyengine_us/parameters/gov/states/mn/tax/income/additions/sources.yaml
@@ -1,5 +1,12 @@
 description: Minnesota adds these variables to federal adjusted gross income when computing its taxable income.
 values:
+  # 2020 Schedule M1NC line 6 adds back the federal charitable deduction for
+  # non-itemizers (CARES Act sec. 2204), through Form M1M line 16: Laws 2023,
+  # ch. 1, sec. 22(c)(2), effective retroactively for 2020.
+  2020-01-01:
+    - form_4972_lumpsum_distributions
+    - charitable_contributions_ald
+    - mn_other_additions
   2021-01-01:
     - form_4972_lumpsum_distributions
     - mn_other_additions
@@ -9,6 +16,10 @@ metadata:
   period: year
   label: Minnesota additions to federal AGI
   reference:
+  - title: 2020 Minnesota Schedule M1NC, Federal Adjustments
+    href: https://www.revenue.state.mn.us/sites/default/files/2024-02/m1nc_20.pdf#page=1
+  - title: Laws of Minnesota 2023, chapter 1, section 22 (temporary additions and subtractions)
+    href: https://www.revisor.mn.gov/laws/2023/0/Session+Law/Chapter/1/
   - title: 2021 Minnesota Schedule M1M, Income Additions and Subtractions, Page 3
     href: https://www.taxformfinder.org/forms/2021/2021-minnesota-form-m1m.pdf#page=3
   - title: 2022 Minnesota Schedule M1M, Income Additions and Subtractions, Page 3

diff --git a/policyengine_us/tests/code_health/test_source_conflicts.py b/policyengine_us/tests/code_health/test_source_conflicts.py
@@ -116,6 +116,7 @@
 # or reword a comment that is not one, then lower or delete its count here.
 # A new file or a higher count fails.
 KNOWN_UNMARKED: dict[str, int] = {
+    "policyengine_us/parameters/gov/irs/ald/charitable_contributions/cap.yaml": 1,
     "policyengine_us/parameters/gov/irs/credits/residential_clean_energy/fuel_cell_cap_per_kw.yaml": 1,
     "policyengine_us/parameters/gov/irs/income/exemption/overtime/hce_salary_threshold.yaml": 1,
     "policyengine_us/parameters/gov/irs/income/exemption/overtime/salary_basis_threshold.yaml": 1,
Original file line number	Diff line number	Diff line change
		@@ -0,0 +1 @@
		Take the 2020 charitable deduction for non-itemizers (IRC 62(a)(22), Form 1040 line 10b) above the line, capped at $300 for every return as the statute reads, so it reduces adjusted gross income; stop adding the 2020 and 2021 non-itemizer amount to itemized deductions; include the non-itemizer cash charitable deduction in itemization comparisons; and add it back in states that did not adopt it.