Congress Agrees on Pandemic Financial Relief

Posted on Monday, December 21, 2020

Details are beginning to emerge regarding a bipartisan agreement on a $900 billion coronavirus relief package that Congressional negotiators agreed to last night. Congress is scheduled to vote on the bill later today. More details will become available in the next few days, but here is what we know so far about included provisions:

A $600 stimulus check to most Americans, based on the same income limits as the one earlier this year.
Extended federal unemployment benefits of $300 per week for 11 weeks.
$280 billion in new PPP loans
Congress is making clear that expenses used to generate PPP loan forgiveness are deductible, although there may be some limits on this.
Recipients of earned income credits and child tax credits can qualify based on 2019 income if that is more favorable than 2020 income.
Multiple tax extenders
Starting in 2021, businesses will be able to deduct 100% of restaurant meals (currently 50%).
The 7.5% medical deduction limitation and $300 above-the-line charitable contribution will continue to apply in 2021.
Some flexibility to carry over unused money in flexible spending and dependent care pre-tax accounts.
Rental assistance and increased food stamp benefits.

We will provide more details as they become available.

Contributed by: Mark Westerhausen, CPA | Director | DWD CPAs & Advisors

Posted in Tax Topics For Individuals, Tax And Accounting Topics For Business

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