Congress has passed the COVID-Related Tax Relief Act of 2020, which is part of the Consolidated Appropriations Act of 2021. President Trump signed the bill into law. This bill includes additional loans under the Paycheck Protection Program (PPP), relief for struggling industries, funding for vaccine-related programs, and several extensions of provisions of the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the Families First Coronavirus Response Act.
While we are not going to delve into every aspect of the provisions included in the more than 5,000 page bill, we do want to highlight some of the tax related provisions. Below is a list of provisions most applicable to many taxpayers. At the bottom of the summary is a link with a more detailed explanation of each of these items.
- Individual Stimulus Payments of $600
- Extension of Unemployment Benefits
- Extension of Certain Deferred Payroll Taxes
- Changes to the Payroll Protection Program
- Deductibility of Expenses
- Expansion of Forgivable Expenses
- Streamlined Forgiveness Process for Loans Less than $150,000
- Additional Funds Available for Borrowing
- Extension of Credits for Paid Sick and Family Leave
- Extension of Employee Retention Credit
- Meals Provided by Restaurants 100% Deductible in 2021 and 2022
- Educator Expenses
- Certain Charitable Contributions Deductible by Non-Itemizers
The year 2020 has been like no other but we are here to help you navigate your tax situation. Please click here to read more about the new tax provisions.