Usually, only those who itemize their deductions qualify for the charitable contribution deduction, and taxpayers are also only allowed to deduct donations that are up to 60% of their AGI. However, the new $300 deduction from the CARES Act is specifically for those who don’t itemize their deductions and would typically not get any tax benefit for donations. Since it’s considered an above-the-line deduction, the IRS applies it when calculating your AGI. In other words, if you donate up to $300 in cash to a qualified organization, your AGI will be reduced by up to $300—and you can still claim the standard deduction.
Remember, the deduction only applies to cash donations made to qualified 501(c)(3) organizations. The IRS.gov site has a database with every qualified organization, which you can search to make sure your charity of choice qualifies.… Read More
Economic Injury Disaster Loans
Economic Injury Disaster Loans
Since the onset of the coronavirus pandemic, the federal government has adjusted eligibility guidelines to better serve businesses affected by the pandemic. Sole proprietors, freelancers and independent contractors are among the newly eligible groups for Small Business Association (SBA) Economic Injury Disaster Loans (EIDLs). Similar to a PPP loan, EIDL loans provide funds for industries struggling to stay afloat in the wake of the coronavirus or any other qualifying disaster. An EIDL loan can be used to cover payroll and inventory, pay debt, cover increased costs due to supply chain interruption, to pay obligations that cannot be met due to revenue loss and for other uses. The interest rate on these loans is 3.75% for small businesses and 2.75% for nonprofits with up to 30 years to repay the loan, and the first payment is deferred for one year.
To qualify for an EIDL under the CARES … Read More
CARES ACT – $300 Charitable Contribution Rule
Remember, the deduction only applies to cash donations made to qualified 501(c)(3) organizations. The IRS.gov site has a database with every qualified organization, which you can search to make sure your charity of choice qualifies.… Read More
Your COVID-19 Resource Portal
Click here to enter the portal.… Read More