{"id":22075,"date":"2021-01-08T08:30:36","date_gmt":"2021-01-08T14:30:36","guid":{"rendered":"https:\/\/taxprocenter.proconnect.intuit.com\/?p=22075"},"modified":"2021-04-06T08:55:09","modified_gmt":"2021-04-06T13:55:09","slug":"new-covid-19-relief-package-passed","status":"publish","type":"post","link":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/new-covid-19-relief-package-passed\/","title":{"rendered":"New COVID-19 relief package passed"},"content":{"rendered":"

For information related to the\u00a0first\u00a0COVID relief package\u00a0<\/i>click here<\/i><\/a>.<\/i><\/p>\n

The Coronavirus Response and Relief Supplemental Appropriations Act of 2021, a $900 billion relief package to deliver the second round of economic stimulus for individuals, families, and businesses, was signed into law Dec. 27, 2020. The bill provides relief through multiple measures, and expands many of the provisions already put into place under the\u00a0Coronavirus Aid, Relief, and Economic Security Act<\/a>,\u00a0including a second round of direct stimulus payments to individuals and families.<\/p>\n

Here is what you need to know to advise your clients:<\/p>\n

Stimulus payments for individuals and joint taxpayers<\/b><\/p>\n

The bill includes a second wave of direct stimulus payments for millions of Americans – up to $600 for eligible individuals, $1,200 for joint taxpayers, and an additional $600 for each dependent child under 17.\u00a0 <\/span>This means a family with two children may receive $2,400.<\/p>\n

As of today, there is nothing your clients need to do to get a stimulus payment. The IRS will begin work to issue stimulus payments using the most recent information they have on file, likely from the 2019 tax return, either by direct deposit or by check.<\/p>\n

Stimulus payments should begin to be sent in the next couple weeks. This information will be updated once more information is available.<\/p>\n

How will a taxpayer know if they are eligible to receive a second stimulus payment?<\/b><\/p>\n

If someone has an adjusted gross income (AGI) of up to $75,000 ($150,000 married filing jointly), they should be eligible for the full amount of the recovery rebate.<\/p>\n

As the AGI increases over $75,000 ($150,000 married filing jointly), the stimulus amount will go down. The stimulus check rebate completely phases out at $99,000 for single taxpayers, $136,500 for those filing as Head of Household, and $198,000 for joint filers with no kids.<\/p>\n

The bill also expands stimulus payments to mixed-status households (households with different immigration and citizenship statuses), meaning more households will be immediately eligible for this stimulus than were for the first round. This also may be retroactive, so some individuals that were ineligible for the first stimulus, provided under the CARES Act, may then be eligible to receive that payment as well.<\/p>\n

Those people receiving Social Security retirement, disability, Railroad Retirement, VA, or SSI income, and are not typically required to file a tax return, will again receive a stimulus payment. As in the first round, the IRS will use the information from Form SSA-1099, Form RRB-1099, or the Veterans Administration, to generate a stimulus payment.<\/p>\n

Extended unemployment<\/b><\/p>\n

Unemployment payments will increase by $300 per week and the benefits will be extended until March 14, 2021.<\/p>\n

The bill also extends the Pandemic Unemployment Assistance<\/a> (PUA), which expands unemployment to those who are not usually eligible for regular unemployment insurance benefits. This means that self-employed, freelancers, and anyone with a side business will continue to be eligible for unemployment benefits.<\/p>\n

Certain workers who have at least $5,000 per year in self-employment income, but are disqualified from receiving PUA because they also have an employer, could also be eligible for an additional $100 per week in unemployment benefits.<\/p>\n

<\/b>Employee retention tax credit modifications<\/b><\/p>\n

The bill extends and expands the CARES Act employee retention tax credit<\/a> (ERTC). It also contains technical corrections to the CARES Act.\u00a0Beginning Jan. 1, 2021, through June 30, 2021, the provision:<\/p>\n