The CARES Act and You
The CARES Act and Provisions Impacting Your Gifts to Second
The CARES ACT (Coronavirus Aid, Relief, and Economic Security Act) was signed into law on March 27, 2020. The act seeks to alleviate economic hardship that has resulted from the coronavirus pandemic. Some key provisions that might help in as you consider your financial support of our church:
- Higher Deduction Limits: For the year 2020, individuals can deduct cash contributions made to qualified charitable organizations of up to 100% of their adjusted gross income (AGI). In 2021, the limit for deducting cash contributions will return to 60% of the taxpayer's AGI.
- New $300 Charitable Deduction for Non-Itemizers: For the calendar year 2020, the CARES Act enables taxpayers who take the standard deduction to claim an above-the-line tax deduction for a total of $300 in qualified cash donations on their tax return.
- Required Minimum Distributions Suspended: For the calendar year 2020, the CARES Act temporarily waives the mandate for those who are normally required to take their Required Minimum Distributions (RMDs). This applies to all types of retirement plans (including IRAs, 401(k)s, 403(b)s, 457(b)s, and inherited IRA plans).
Thank you for your generosity to Second Presbyterian Church!