Here’s a non-exhaustive list of what’s in the new stimulus bill for individuals and small businesses: Stimulus Checks: - $600/person refundable credit (adults and dependent children per CARES Act requirements).
- Phase-out starts at (2019) AGI of $75k/$150k/$112.5k for single/joint/HOH filers.
- Individuals must have been alive on 1/1/20.
Existing PPP Loans: - Businesses CAN deduct expenses paid for by PPP funds if loans are forgiven (overriding IRS guidance to the contrary).
- New simplified, documentation-free 1-page forgiveness application for loans <$150k.
- ALL Businesses can choose between 8- and 24-week covered periods.
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New qualifying expenses include operations expenditures, property damage costs, supplier costs, and worker protection expenditures. Also group life, dental, vision, and disability costs count as payroll expenditures.
- Lenders don’t have to issue a 1099 for cancelled PPP debt.
NEW Round of PPP Loans: - For businesses with <300 EEs that have seen 25% or more drop in revenue in any quarter y/o/y.
- Accommodation and Food Service businesses can get 3.5x avg. monthly payroll and can have up to 500 EEs.
- All new loans capped at $2M.
- Total new PPP funds of $35 billion.
Optional Payroll Deferral: Any employer who deferred payment of payroll taxes in Q4 now has until December 2021 (had been April 2021) to repay those amounts. FFCRA Credits: Refundable payroll tax credits for sick and family leave are extended through March 2021, and self-employed individuals can use last year’s net earnings.
Educator PPE: Educators who spend personal money on PPE or cleaning supplies can now include those expenditures in the Educator Expense deduction. The $250 limit on the deduction does not change. |
