It’s a done deal!
Here is the information we sent in our Flash E-mail on March 10 detailing the key tax provisions included in the bill. We are working through the complex bill and will have a one-hour live webinar on Monday, March 22, and Tuesday, March 23. We will also cover the Act in the April issue of Spidell’s Federal Taxletter®.
California and the PPP
Note: We still have no update on AB 80, California’s proposed partial conformity to allowing PPP deductions. We have heard two things from reliable sources: It could be in a week or so; and it may not happen until June, along with the budget. So we still recommend extending affected California returns.
Individual tax provisions
- A $10,200 per individual unemployment insurance exclusion for the 2020 taxable year, only for households with modified AGI of $150,000 or less. Taxpayers who have already filed returns reporting 100% of their unemployment will need to supersede or amend their returns to get a refund;
- A third round of Economic Impact Payments of $1,400 per individual and dependent (including dependents over age 17);
- Extension of Pandemic Unemployment Assistance until September 6 with the $300 boost;
- Increased and fully refundable Child Tax Credits and Dependent Care Assistance Credits for the 2021 taxable year;
- An increased employer-provided dependent care assistance exclusion;
- A five-year COD exclusion for student loan forgiveness;
- An expansion and increase of the Earned Income Tax Credit;
- Tax relief for excess advanced Premium Tax Credits received in 2020, and an increase in the Premium Tax Credit for 2021 and 2022; and
- Six months of free COBRA benefits.
Business tax provisions
- Extension and expansion of the Employee Retention Credit;
- Extension and expansion of the employer credits for paid sick and family leave benefits;
- Credits for providing subsidized COBRA benefits; and
- Restaurant revitalization grants to cover restaurant business losses.
To access the full text of the bill, go to:
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