How the New Stimulus Bill May Affect You
On Monday, December 21st, the U.S. Senate and House of Representatives passed a bill that includes $900 billion in stimulus relief in an effort to help individuals and businesses during the ongoing COVID-19 pandemic.
Here are a few highlights of the bill that may impact you:
• Provides $600 stimulus payments to individuals
• Adds $600 to extended weekly unemployment benefits through March 14, 2021
• Overrules IRS previous interpretation regarding Payroll Protection Program (PPP) forgiveness and confirms that expenses paid with forgiven PPP funds are tax deductible
• Provides additional PPP funding for first-time qualified borrowers as well as businesses that previously took a PPP loan provided they saw their revenue fall by 25%
• Creates a simplified forgiveness application process for PPP loans of $150,000 or less
• Repeals the requirement that PPP borrowers deduct the amount of any EIDL advance from their PPP forgiveness amount
• Adds temporary allowance of full deduction for business meals provided by a restaurant that are paid or incurred in 2021 and 2022
• Extends for one year (through 2021) the $300 above-the-line-deduction, which was established in the CARES Act and set to expire the end of 2020
You can find more information regarding the Consolidated Appropriations Act, 2021 here.