The CARES Act and Canine Companions
In an effort to address the impact of COVID-19, Congress has enacted several tax law changes. Most recently, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted to provide relief to aid America’s families and businesses.
Canine Companions for Independence created this page to highlight some of the ways in which the CARES Act may impact your tax-planning and options for charitable giving, if you are thinking about making a gift in support of our mission during this time.
The CARES Act includes the following charitable tax provisions to encourage giving:
- $300 charitable tax deduction for everyone. There is no need to itemize when filing your tax returns to take advantage of the CARES Act special tax deduction, for cash gifts up to $300 for individuals and $600 for a married couple, to reduce your tax liability. This deduction is available only for cash gifts made in 2020 and does not apply to gifts or contributions made to donor-advised funds or private foundations.
- For individuals who itemize when filing their tax returns, if you make a charitable gift you will be able to deduct more this year. Under the CARES Act up to 100% of annual income can be deducted for cash gifts to charities. Previously the deduction was capped at 60% of annual income.
- Corporations may now deduct charitable gifts up to 25% of their taxable income. The CARES Act increased the deductible amount from 10% to 25%.
- Required minimum distributions (RMDs) from qualified retirement plans have been temporarily waived for 2020. While individuals 70½ may continue to make tax-free gifts to charities up to $100,000 each year, charitable gifts from retirement account assets will not be required in 2020.
We encourage you to consult your professional advisors to learn more about how you can benefit from these recent tax law changes.
Disability doesn’t disappear in times of crisis – and neither do we. Canine Companions® assistance dogs are providing incredible support to our graduates now more than ever. Please consider making a gift.