Coronavirus Aid Relief and Economic Security Act (CARES Act) Important Information for Donors
Thank you for ensuring Seton Hill students have the resources they need to continue to be healthy and successful now and into the future. Thank you for helping us all to Hazard Yet Forward.
The Coronavirus Aid Relief and Economic Security Act (CARES Act) that was signed into law on March 27 affords donors added incentive for charitable contributions:
- Creates a new above-the-line deduction (universal or non-itemizer deduction that applies to all taxpayers) for total charitable contributions of up to $300. The incentive applies to cash contributions made in 2020 and can be claimed on tax forms next year.
- The law also lifts the existing cap on annual contributions for those who itemize, raising it from 60 percent of adjusted gross income to 100 percent.
- For corporations, the law raises the annual limit from 10 percent to 25 percent. Food donations from corporations would be available to 25 percent, up from the current 15 percent cap.
- The new law temporarily suspends Required Minimum Distributions (RMD) from IRAs for 2020. However, it retains the tax advantages of giving directly from your IRA if you are 70½ or older.