Coronavirus Stimulus Bill, SBA

President Signs COVID-19 Relief Bill

We sent information last week regarding the COVID-19 Assistance Package designed to provide relief from the coronavirus pandemic. On December 27, President Trump signed this bill into law. Here are a few of the main tax provisions:

  • Direct payments up to $600 for individuals earning up to $75,000 per year ($1,200 for married couples with an annual income threshold of $150,000 per year).
    • According to the Treasury Department, the $600 payments will begin distribution as soon as this week.
    • A bill proposing an increase in the approved $600 stimulus check to $2,000 is currently with the Senate after the House approved the increased amount on Monday.
  • Additional $600 per child dependent.
  • Extended unemployment benefits up to $300 per week beginning as early as December 27 through at least March 14.
  • Second round of Paycheck Protection Program (PPP) funding with new provisions.
  • Provisions for federal tax deductibility of business expenses paid with forgiven PPP loans (reversing previous IRS guidance regarding nondeductibility).
  • States may have different tax treatment regarding these expenses.

Click here to read the full article containing details of the bill.

We will alert you once more information becomes available. In the meantime, please feel free to reach out to us with any questions.