CARES Act Information

The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, provides more than $2 trillion in relief touching nearly every corner of the U.S. economy: large and small businesses, health care providers, non-profits and individual citizens. The following items may be relevant to you when considering your support of UNC Health. As always, consult your tax advisor about how these opportunities may or may not work for you.

• 100% of adjusted gross income limit available in 2020 for cash gifts: For the 2020 tax year only, taxpayers may elect to apply a new 100% of adjusted gross income limit to cash gifts to public charities such as UNC Health Foundation. Gifts to donor advised funds (DAFs) or supporting organizations (SOs) are not eligible for this special election. The 100% limit is reduced dollar-for-dollar by other non-cash itemized charitable deductions and gifts to DAFs or SOs, all of which still are still subject to the previous statutory limits. Note of caution: In some circumstances, donors will still be better tax-wise spreading their charitable deduction over more than one year. Please ask your advisor about the best solution for you.

• Non-itemizers eligible for charitable deduction: A reduction in taxable income is available in 2020 for taxpayers who do not itemize their deductions. This is an “above-the-line” adjustment that will reduce taxable income. This adjustment is available for cash gifts to public charities only. Consult your tax advisor to determine how much you are eligible to deduct.

• Required minimum distributions waived in 2020 for most individuals: Most taxpayers will not have a required minimum distribution from their retirement plan in 2020. Minimum distributions will not be required from IRAs, 401(k)s, 403(b)s and most other defined contribution plans maintained by an employer for individuals. Making a qualified charitable distribution this year will, however, still allow itemizers and non-itemizers alike to direct up to $100,000 from an IRA to charities in a tax-efficient manner.

For more information or questions, contact us at 919-966-1201 or unchfgiving@med.unc.edu.