Please enjoy this guest blog post from parishioner & tax professional Theresa Falchini:
The President has passed a provision to the tax code called the CARES Act to help with the pandemic. There are numerous provisions for businesses that do not affect us, but there are two provisions that are very helpful for all of us.
The most beneficial provision is that it allows all of us to make a $300 contribution to a charitable organization, such as St. Nicholas of Myra Church, and take a deduction on your tax return for that amount whether you itemize or not. As an example, if you make $ 30,300 and you make a donation of $300, you would be able to deduct the $300 and then pay your taxes. It is a great benefit for you on your taxes and, of course, great for the church. I encourage you to take advantage of this tax benefit.
The next provision in the CARES Act that can help all of us has to do with IRA and 401K retirement accounts. You can take a distribution of up to $100,000 from those accounts penalty free. The distribution would be taxable, but would not be penalized if you are under 59 1/2. As for the tax, there is a provision that allows you to spread the tax out over 3 years. As to whether this is right for you or not, I would advise you to check with your tax accountant to figure the best plan for your situation. The important thing is knowing that this provision is in the law to help you.
The other major provisions in the CARES Act has to do with businesses and SBA loans. Although these provisions might help some of you, I did not share them here. If you are a small business, I strongly urge you to contact your accountant regarding some provisions that might be in the Act to help you.
I pray for all of us and know in my heart that God is Good and we will all get through this and remain strong in our love and faith. I miss all of you and look forward to being together soon at church.
The President has passed a provision to the tax code called the CARES Act to help with the pandemic. There are numerous provisions for businesses that do not affect us, but there are two provisions that are very helpful for all of us.
The most beneficial provision is that it allows all of us to make a $300 contribution to a charitable organization, such as St. Nicholas of Myra Church, and take a deduction on your tax return for that amount whether you itemize or not. As an example, if you make $ 30,300 and you make a donation of $300, you would be able to deduct the $300 and then pay your taxes. It is a great benefit for you on your taxes and, of course, great for the church. I encourage you to take advantage of this tax benefit.
The next provision in the CARES Act that can help all of us has to do with IRA and 401K retirement accounts. You can take a distribution of up to $100,000 from those accounts penalty free. The distribution would be taxable, but would not be penalized if you are under 59 1/2. As for the tax, there is a provision that allows you to spread the tax out over 3 years. As to whether this is right for you or not, I would advise you to check with your tax accountant to figure the best plan for your situation. The important thing is knowing that this provision is in the law to help you.
The other major provisions in the CARES Act has to do with businesses and SBA loans. Although these provisions might help some of you, I did not share them here. If you are a small business, I strongly urge you to contact your accountant regarding some provisions that might be in the Act to help you.
I pray for all of us and know in my heart that God is Good and we will all get through this and remain strong in our love and faith. I miss all of you and look forward to being together soon at church.
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