Second Stimulus Update

After months of back and forth, Congress has finally passed the Second Stimulus Package and has been officially signed by the President. The $900 billion COVID-19 relief package has many new benefits that impact both individuals and businesses.

I have listed the top 5 provisions below that may impact you. Please contact me if you have any questions or need any assistance with capitalizing on these provisions.

1. Second Round of Stimulus Checks 

One of the most anticipated benefits is the second round of stimulus checks being sent out. This time they will be $600 for person with an adjusted gross income less than $75,000 filing single or $150,000 married filing joint. 

2. Second Round of PPP Loans

Without getting into too much detail here as it really requires a separate newsletter, Congress has approved a second round of PPP funding. This go around, the forgivable loans will be more difficult to qualify for as you will have to prove that your gross receipts have declined due to COVID-19. However, be on the lookout at your local bank as applications may start to be available in the coming weeks. 

3. Deductibility of PPP Forgiveness Expenses

Perhaps the biggest saving grace for small business owners is Congress overruling the IRS by allowing all expenses that went toward PPP forgiveness to be tax deductible. For businesses that received PPP loans, this will be a huge relief and potentially lead to a significantly lower tax bill for 2020.

4. Federal Unemployment Benefit Extension

Congress has extended the Federal unemployment benefit kicker of $300 per week through March 14th. You must qualify for state unemployment benefits to receive this extra amount.

5. 100% Deductibility of Business Meals in 2021 - 2022

In order to help struggling restaurants, Congress has increased the incentive to eat out by allowing for 100% deductibility of business meals in 2021 and 2022. Currently, only 50% of business meals is allowed as a deduction.