On March 10, 2021, the House passed the American Rescue Plan Act of 2021. The Bill is expected to be signed by President Biden in the coming days. Join us for two webinars as we breakdown what the most recent stimulus means for businesses, not-for-profits and individuals.
What Businesses & Not-for-Profits Need to Know
March 18 | 12pm | Webinar
Join our webinar on March 18th as we discuss the relevant changes for your business and how you can utilize these changes to benefit the most from the bill. We will look at new grants offered in the bill along with new tax credits that can help businesses with their cash flows. We will also focus on several new programs to help your employees, such as government funded COBRA coverage.
Impact for Individuals
March 19 | 12pm | Webinar
Join us for a 30 minute webinar on March 19th as we discuss how you can best maximize the new provisions in the law. While the economic stimulus payments can help provide relief right away, there are several provisions in the bill meant to help families with costs such as health insurance and child care. We will look at each of these provisions, along with how you can best maximize the new stimulus bill to your benefit.
Key provisions in the bill related to taxes:
- The Bill includes a provision that exempts $10,200 of unemployment compensation per person for Tax Year 2020, if their AGI is under $150,000 if Married filing jointly ($75,000 if single) in 2020.
- For Restaurants that have seen a drop in gross receipts between 2020 and 2019, the New Restaurant Revitalization Grants will help to supplement income and it will be non-taxable.
- COBRA Credit: – There will be a credit for businesses to help cover 100% of COBRA insurance costs covering the period April 1, 2021 – September 30, 2021.
- Congress has appropriated more funds for the Targeted EIDL Program. These funds are now tax-exempt, and a deduction is allowed.
- Child Tax Credit: The Credit has been increased to $3,000, plus an extra $600 for children under age 6. Also, starting in July, the IRS will send out advances of the increased child tax credit each month. The IRS will setup a portal to opt OUT of this.
- FFCRA Credits are extended through 9/30/21.
- Employee Retention Credits are extended through 12/31/21
- The Premium Tax Credit has been expanded to help cover health insurance.
- The Dependent Care Credit is expanded to $4,000 for one child and $8,000 for two or more, calculated at 50 percent of the eligible expenses. (Dependent care FSA can expand only for 2021 to $10,500 if the employer allows it).
- Student loans that are discharged between 12/31/20 and 1/1/2026 will not be taxed.
- The Earned Income Tax Credit is expanded
keep scrolling for an update on PPP changes