President Biden signs American Rescue Plan Act - Spidell

President Biden signs American Rescue Plan Act


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:

www.congress.gov/bill/117th-congress/house-bill/1319/text

Attend Spidell’s American Rescue Plan: Tax Implications webinar for in-depth analysis of these bill provisions. Click here and register today.