New tax guidance allows for tax-free caregiver PTO donations to COVID-19 funds
The Internal Revenue Service (IRS) recently issued updated guidance for contributions of PTO which aid those affected by COVID-19. For Cleveland Clinic, this new guidance applies to caregivers who donate PTO to either the COVID-19 Emergency Fund or the Caregiver Hardship Fund. This is a great, but time-sensitive, opportunity for your PTO donation to make a greater impact in support of caregivers in need.
Here is what the new guidance means:
- Effective July 1, 2020, through Dec. 31, 2020, Cleveland Clinic caregivers who donate PTO to either the COVID-19 Emergency Fund or the Caregiver Hardship Fund willnot be taxedon the value of the PTO donated. This will enable the full value of your PTO to be transferred to support our caregivers.
- However, since there is no tax assessed on the value of the PTO, the contributions areno longer tax deductible.
As a reminder, PTO donations count toward our obligation to use 88 hours of PTO by July 31, 2020. For more information about how to donate PTO, click here. Thank you for your consideration and ongoing support of fellow caregivers.