Did You Know?
The CARES Act also means that charitable contributions this year carry more deductions than at any other time:
1. The CARES Act creates a new above-the-line deduction for you and for 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.
2. The law also lifts the existing cap on annual contributions if you itemize, raising it from 60% of adjusted gross income to 100%.
Unemployment Relief Provisions included in the CARES Act
Please review for applicability to you as an employer, employee, or self-employed person.
Sec. 2102. Pandemic Unemployment Assistance.
This provision would create a new program modeled on Disaster Unemployment Assistance that would provide unemployment benefits to individuals who do not qualify for regular unemployment compensation and are unable to work because of the COVID-19 public health emergency. Pandemic Unemployment Assistance will cover self-employed workers (including gig workers and independent contractors), part-time workers, and those with limited work histories. The changes made in sections 2104 and 2107 to increase the size of regular unemployment benefits and make them available for additional weeks will also apply to benefits received through the Pandemic Unemployment Assistance program. Pandemic Unemployment Assistance will be state-administered but fully federally funded. Except as otherwise provided in this section, federal regulations for Disaster Unemployment Assistance will apply to Pandemic Unemployment Assistance. The program is effective through December 31, 2020.
Sec. 2103. Emergency Unemployment Relief for Governmental Entities and Nonprofit Organizations.
This provision would reduce the amount by which nonprofits, Indian Tribes, and governmental entities are required to reimburse states for benefits paid to their workers who claim unemployment insurance by 50 percent through December 31, 2020. This provision would also allow the Secretary of Labor to issue guidance to states to provide flexibility for employers in making reimbursement payments.
Sec. 2104. Emergency Increase in Unemployment Compensation.
This provision would add an additional $600 in Federal Pandemic Unemployment Compensation to every weekly unemployment benefit, effective until July 31, 2020. This $600 benefit will be taxable (like regular unemployment benefits), but it will be disregarded in determining Medicaid or CHIP eligibility.
Sec. 2107. Pandemic Emergency Unemployment Compensation.
This provision would make an additional 13 weeks of federally-funded unemployment compensation for individuals who have exhausted their state unemployment benefits available immediately through December 31, 2020.
Sec. 2112. Waiver of the 7-Day Waiting Period for Benefits Under the Railroad Unemployment Insurance Act.
This provision would eliminate the waiting week between applying for and receiving Railroad Unemployment Insurance benefits through December 31, 2020.
Sec. 2113. Enhanced Benefits under the Railroad Unemployment Insurance Act.
This provision would provide an additional $1200 payment to individuals receiving railroad unemployment benefits for each two-week registration period during which the individual receives benefits through July 31, 2020.
Sec. 2114. Extended Unemployment Benefits under the Railroad Unemployment Insurance Act.
The provision would extend the availability of Railroad Unemployment Insurance benefits by 13 weeks through December 31, 2020.
Hope you find this helpful.