There are several additional benefits in the new stimulus bill for individuals and businesses that I outline below. Enjoy!
Stimulus checks $600 per taxpayer with a phase-out starting at $75,000 of Adjusted Gross Income (AGI); No repayment is required if the tax credit on the 2020 return is less than the amount received. So, if you receive more than you should have, you don't have to return the additional received. If you did not receive the full amount due to you, you can claim any remaining amount due on your 2020 tax return.
Pandemic Unemployment insurance of $300 per week (down from $600) continues until March 14, 2021.
FFCRA business mandatory requirements expired 12/31/20. However, businesses may voluntarily pay for COVID-related leave and receive credits for paid sick and family medical through March 31, 2021. This is a great benefit as the government is paying for 100% of COVID leave through payroll tax credits. Consult your HR support and payroll provider for more information.
A charitable deduction for non-itemizers of $300 ($600 for a married couple) to any public charity in 2021. This is big for nonprofits - even if a taxpayer takes the standard deduction they can deduct donations up to $300.
Business meals and beverages will now be 100% tax-deductible if provided by restaurants for 2021 and 2022 tax year - used to “wine and dine” an important business relationship and paid or incurred before January 1, 2023. Great news for businesses and restaurants!
Medical expenses exceeding 7.5% of Adjusted Gross Income will be deductible. This was supposed to change to a 10% minimum but has been set at 7.5% permanently.
Educator expense deduction (up to $250) includes expenses incurred for the purchase of personal protection equipment.
Health and Dependent Care FSA plans may now permit unused benefits to be carried over to the next tax year through the 2021 plan year.