Charitable Giving Changes Due to Covid-19
Renee Daggett • July 22, 2020
Covid-19 has presented unique opportunities for charitable giving, for the 2020 tax year, which has been addressed in the new Coronavirus Aid, Relief, and Economic Security (CARES) Act. In this newsletter, I will explain what guidelines have changed for the upcoming tax year.
Under the new guidelines, which apply to the 2020 tax year only
, taxpayers can donate 100% of their adjusted gross income to charity and have it fully offset their taxable income. Previously, this deduction was capped at 60% of adjusted gross income.
For example, a taxpayer has $100,000 of taxable income and wants to make a $100,000 donation to a qualified charity in 2020. The taxpayer will have reduced their taxable income to zero and won’t owe any taxes on their income. In prior years under the 60% rule, using the same income and charitable contribution amount, a taxpayer would have only been able to reduce their taxable income by $60,000.
|
|
|
|
Tax season may be done, but your work isn’t. Learn five practical steps business owners should take after filing to avoid surprises and stay ahead all year.
Organize your finances before tax season ends! Gather documents, maximize deductions, and streamline bookkeeping to reduce stress and save money.
Stop leaving money on the table. Discover essential tax deductions, business credits, and smart accounting strategies to keep more of your hard-earned cash. Plan ahead and maximize your savings this tax season.
March Madness isn’t just for basketball—your finances need a winning strategy too! Learn how cash flow management, tax planning, and financial tracking can keep your business from a costly upset. Read more for expert tips!
The BOI reporting deadline has been extended to March 21, 2025, but more changes may be coming. Stay informed on the latest updates, compliance requirements, and what your business needs to do now. Read more on AdminBooks.
Protect your QuickBooks Online account from fraud by enabling multi-factor authentication (MFA). Follow our step-by-step guide to secure your financial data today.
The Supreme Court has ruled to reinstate BOI Reporting.
The recent wildfires in Los Angeles County have devastated communities, leaving thousands dealing with property loss, displacement, and financial uncertainty. In response, both the IRS and the State of California have granted tax deadline extensions and financial relief to help individuals and businesses recover.
The new year is here, and with it comes an important deadline for business owners: January 31, 2025. If you’ve paid independent contractors, service providers, or freelancers $600 or more in 2024, you may need to file a 1099 form for them. With the deadline just weeks away, now is the time to get organized. Filing your 1099s on time not only avoids penalties but also keeps your business in good standing.
The requirements for filing Beneficial Ownership Information (BOI) reports under the Corporate Transparency Act (CTA) have shifted yet again. As of December 26, 2024, BOI filing is not currently required, following an order from the Fifth Circuit Court of Appeals that restored an injunction against enforcing the CTA. However, this situation remains fluid and could change on short notice.
