The following is a list of nonprofit tax legislation impacted by the COVID-19 pandemic. Use these resources and the FAQ list on our website to learn more about how your nonprofit can receive assistance.
Above-the-Line Charitable Tax Deduction
The CARES Act provides incentives for Americans who are in a position to help others in need: a new above-the-line charitable deduction. Taxpayers will be able to claim up to $300 in cash contributions made to a nonprofit charity this year as a deduction from their gross income if they take the standard deduction on their 2020 tax return. This deduction will ultimately reduce the amount of your income that’s taxable.
New Proposed Legislation to Help Nonprofits
The Coronavirus Help and Response Initiative Through Year (CHARITY) 2022 Act, introduced by Rep. Mark Walker, R-N.C., would allow above-the-line charitable contribution deductions for individuals who don’t itemize deductions. The deduction will begin in 2020 and allow a deduction of an amount equal to 1/3 of the taxpayer’s standard deduction—about $4,000 for individuals and $8,000 for families.
Treasury Extends Form 900 Filing Date to July 15, 2020
The U.S. Department of the Treasury and the Internal Revenue Service today announced they are extending tax filing and payment deadlines for tax-exempt organizations and certain estates and trusts. Nonprofits and fiscal year businesses with returns due between April and June are postponed to July 15th.
AICPA Released FAQ About Coronavirus and Tax Impacts
The Family First Coronavirus Response Act that was signed into law on March 18th contains refundable tax credits for nonprofit employers who provide paid sick leave or family or medical leave to their employees who miss work for various coronavirus-related reasons. There are lots of limitations and exceptions that are discussed in this FAQ. The provisions are effective April 1, 2020 and apply to leave taken between that date and December 31, 2020.