Stimulus package highlights 2021: Benefits and Details | The Art and Science of Successful Planning

After some political back-and-forth in December, President Trump signed the $900 billion Consolidated Appropriations Act of 2021 into law. This law provides critical support as the COVID-19 pandemic continues to affect employers and employees. Here’s a closer look at the stimulus package highlights 2021, including the key provisions designed to help businesses and individuals navigate this challenging period.

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.¹

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.²

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.³

Small Businesses:

The 50% limit on the deduction for business meals has been lifted. Business meal expenses after December 31, 2020, and before January 1, 2023, may now be fully deductible. Please consult your tax, legal, or accounting professional for more specific information regarding this provision.⁴

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, 2021.⁵

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.

^{1. USAToday.com, December 31, 2020}

^{2. CNBC.com, December 21, 2020}

^{3. ThinkAdvisor.com, December 30, 2020}

^{4. ThinkAdvisor.com, December 30, 2020}

^{5. Forbes.com, December 29, 2020}

Consolidated Appropriations Act of 2021

Today’s summary of the Consolidated Appropriations Act of 2021 provides information only. It does not replace advice from a qualified professional. Always consult your tax, legal or accounting advisor before making changes to your tax strategy based on the new stimulus package.

We developed this content from sources believed to be accurate. It is not intended as legal or tax advice. For guidance specific to your situation, please contact a qualified professional. FMG Suite, LLC produced this material to provide information on a relevant topic. FMG Suite, LLC is not affiliated with the named representative, broker-dealer, or any state- or SEC-registered investment advisory firm. The opinions and information provided are for general purposes only and should not be considered a solicitation to buy or sell any security.