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Astoria Strategic Wealth

Stimulus Relief Package #2 - Signed into law on Sunday evening, December 27th

As we close out 2020, Congress has finally passed an additional Covid-19 relief bill totaling $900 billion! While still on the President’s desk for signature, here are a few key provisions which may apply to you or your business in 2020 and/or 2021:

  • Another round of stimulus checks for up to $600 per person for those with an AGI less than $75,000/year (individuals) or $150,000 for joint filers, plus $600 per each child potentially.
  • For those who applied for Paycheck Protection Program (PPP) loans, the good news is that your forgiven loan is now not considered taxable (as you are allowed to deduct business expenses paid with those funds). This was a point of concern for most CPA’s so a welcome relief!
  • There is also a second round of PPP funds available for non-profit organizations, and in some cases, for those who have already obtained a PPP loan. The forgiveness features for PPP loans of less than $150,000 have also been simplified.
  • Business meals (food and beverages from a restaurant) are 100% deductible in 2021 and 2022.
  • Even for those who do not itemize deductions, the first $300 of charitable donations are deductible on top of the standard deduction in 2020 and this is increased to $600 in 2021!
  • Unemployment benefits are extended $300 per week on top of state benefits until March 2021.
  • The bill directs more than $8 billion into vaccine distribution, along with $20 billion to ensure Americans receive shots for free. The bill also puts at least $20 billion more into Covid-19 testing and contact tracing.

If your head is still spinning from the first few rounds of relief bills, we encourage you to look at our previous posts. While we are still wary of the long-term impact of so much borrowing by the Treasury,  these additional measures are intended to help bring the economy back to a healthier level of economic activity and restored employment.