News | April 2, 2020
The $2 trillion COVID-19 stimulus package, Coronavirus Aid, Relief, and Economic Security Act (CARES) Act, was signed into law on Friday, March 27. The CARES Act provides tax relief and tax incentives for individuals and businesses, supports and provides loan forgiveness for small businesses, and enhances unemployment insurance. We are focusing this blog primarily on aspects of the CARES Act related to tax relief for individuals and businesses.
The Act allows charitable deductions of up to $300 to churches and charitable organizations in 2020 regardless of whether contributors itemize their deductions or not.
The Act modifies the limitations on deductions for charitable cash contributions in 2020 by individuals that itemize their deductions and corporations. For an individual, the normal limit on certain charitable deductions of 50% of AGI will not apply. For electing corporations, the normal limit on charitable deductions of 10% of taxable income is increased to 25% of taxable income.
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The information above is general and educational in nature and should not be considered legal or tax advice. Tax laws and regulations are complex and subject to change. Information is as of the date of publication. GW & Wade cannot guarantee that this information is accurate, complete, or timely. We make no warranties with regard to such information or results obtained by its use. Always consult an attorney or tax professional regarding your specific situation.
Clients of the firm who have specific questions should contact the GW & Wade Counselor with whom they regularly work. All other inquiries, including any inquiry concerning a potential advisory relationship with GW & Wade, should be directed to:
Laurie Wexler Gerber, Director of Marketing
GW & Wade, LLC
1 The distribution provision applies to individuals who have been diagnosed with COVID-19 by a test approved by the CDC, their spouse or dependent who has been diagnosed by such a test, or an individual who experiences financial consequences as a result of being quarantined, furloughed, laid off, or suffered reduced working hours, or who is unable to work due to lack of child care, or closing or reducing hours of a business owned or operated by the individual, all due to the virus or disease.
GW & Wade Associate