Feeling charitable? Now’s the time to give
In an economic downturn, charitable donations typically decline. So, if you’re in a position to donate, charitable organizations need your help now more than ever. Fortunately, the Coronavirus Aid, Relief and Economic Security (CARES) Act offers some tax incentives to support your favorite charity.
For cash gifts made to public charities in 2020, the law increases the deduction limit from 60% of adjusted gross income (AGI) to 100% of AGI. If you’re considering donating appreciated stock or other assets, generally a good strategy, this year it may be preferable to sell the assets and donate the cash.
The act also creates a new “above-the-line” deduction for cash donations up to $300 by nonitemizers.
Tax break for employer student loan repayments
The Coronavirus Aid, Relief and Economic Security (CARES) Act allows employees to exclude from income up to $5,250 in student loan repayments made by their employers between March 27 and December 31, 2020. It appears that there’s no need to show a connection between the loan repayment and the novel coronavirus (COVID-19) pandemic.
The law also permits most borrowers to suspend monthly loan payments through September 30, 2020, without penalty.
Employers: Should you reimburse employees’ remote work expenses?
One byproduct of the novel coronavirus (COVID-19) pandemic is that more employees are working remotely than ever before. As a result, these employees may incur a variety of expenses for such items as:
- Phone and internet services,
- Computers, monitors, tablets, printers, teleconferencing equipment, fax machines, software and other technology,
- Desks, chairs and other office furniture,
- Paper and other office supplies, and
- Electricity and other utilities.
Generally, employees cannot deduct these expenses. But their employers may be able to deduct them as business expenses if they reimburse employees. And, if reimbursement is made according to an “accountable plan,” employees need not include these amounts in their income. Be aware that under some states’ laws, employers may be required to reimburse these expenses.
Information provided on this web site “Site” by Thompson Greenspon is intended for reference only. The information contained herein is designed solely to provide guidance to the user, and is not intended to be a substitute for the user seeking personalized professional advice based on specific factual situations. This Site may contain references to certain laws and regulations which may change over time and should be interpreted only in light of particular circumstances. As such, information on this Site does NOT constitute professional accounting, tax or legal advice and should not be interpreted as such.
Although Thompson Greenspon has made every reasonable effort to ensure that the information provided is accurate, Thompson Greenspon, and its shareholders, managers and staff, make no warranties, expressed or implied, on the information provided on this Site, or about any other website which you may access through this Site. The user accepts the information as is and assumes all responsibility for the use of such information. Thompson Greenspon also does not warrant that this Site, various services provided through this Site, and any information, software or other material downloaded from this Site, will be uninterrupted, error-free, omission-free or free of viruses or other harmful components.
Information contained on this Site is protected by copyright and may not be reproduced in any form without the expressed, written consent of Thompson Greenspon. All rights are reserved.
Ready to talk to one of our specialists?
Our specialists are all seasoned professionals who have years of experience working within your industry. Reach out to us today to schedule a consultation.