Tax Benefits of the CARES Act
The new CARES (Coronavirus Aid, Relief and Economic Security) Act is designed to help you, businesses and nonprofits facing hardship during the coronavirus pandemic.
During the 2020 tax year the bill:
- Allows taxpayers who take the standard deduction to make up to $300 of charitable contributions to qualified charities.
- Allows individuals who itemize their deduction to deduct up to 100% of their adjusted gross income in cash contribution to qualified charities
- Allows for corporations to deduct up 25% of their taxable income when making cash contributions to qualified charities.
- Temporarily suspends the requirements for required minimum distributions for IRA holders.
The changes made this tax year apply only to cash gifts and do not apply to gifts made to a donor-advised funds or private foundations.
Please contact your tax accountant or financial advisor to learn more about how the CARES Act may help you support the organizations most important to you.