January 10, 2021

PATRICK: Five highlights of new stimulus package | Local News

PATRICK: Five highlights of new stimulus package | Local News


After a bit of political posturing in December, the $900 billion Consolidated Appropriations Act of 2021 (2021 CAA) was signed into law by President Trump as the COVID-19 pandemic continues to impact employers and employees.

Here’s a quick recap of five key highlights:

Stimulus Checks: The new law authorized a second round of $600 checks for people with income that meets the criteria. The checks start to phase out for individuals who earned at least $75,000 in 2019 and $150,000 for joint filers.

Unemployment Benefits: The law provides up to $300 per week in enhanced benefits through March 2021. The benefits extend to self-employed individuals and gig workers.

Student Loan Repayment: The 2021 CAA extends the provision that allows employers to repay up to $5,250 annually towards an employee’s student loan payments. The payments are tax-free to the employee.

Small Businesses: The 50% limit on the deduction for business meals has been lifted. Business meal expenses after Dec. 31, 2020, and before Jan. 1, 2023, may now be fully deductible. Please consult your tax, legal or accounting professional for more specific information regarding this provision.

PPP Loans: The new law contains $284 billion in relief for a second round of Payment Protection Program loan funding. Businesses with 300 or fewer employees may be eligible for a second loan. “Second-draw” loans are available through March 31, 2021.

As 2021 gets underway, expect some additional guidance from regulators on 2021 CAA. Our office will keep an eye out for updates and pass information as it becomes available.

 

This information should not be construed by any client or prospective client as the rendering of personalized investment advice. All investments and investment strategies have the potential for profit or loss, and there can be no assurance that the future performance of any specific investment or investment strategy including those discussed in this material will be profitable or equal any historical performance levels. Investment strategies such as asset allocation, diversification, or rebalancing do not assure or guarantee better performance and cannot eliminate the risk of investment losses. Any target referenced is not a prediction or projection of actual investment results and there can be no assurance that any target will be achieved. Kent Patrick is with Bush Wealth Management.

 



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