American Rescue Act of 2021: What it Means for your Income Taxes

The US Senate has passed a fresh fiscal stimulus package to support the economy battered by the COVID- 19 impacts. The $1.9 trillion coronavirus package passed by the Senate contains a wide range of proposals to help Americans still struggling with the economic fallout of the pandemic. Congress passed the American Rescue Plan Act of 2021 on March 10, 2021 and it was signed into law by President Joe Biden on March 11, 2021. In addition to the tax provisions, the American Rescue Plan includes many non-tax provisions to help address the continuing pandemic. These include support for unemployed workers, funding for COVID-19 testing and vaccination programs, aid to state and local governments, and assistance to schools to permit returning to the classroom safely. The tax provisions primarily expand upon current provisions of the Tax Code with a few enhancements. 

• $1,400 stimulus checks for each family member
  
• First $10,200 in unemployment for 2020 will not be taxed, up to AGI of $150,000
• Student loan forgiveness exempt from tax through 2025
• Changes to the Child Tax Credit, the Earned Income Tax Credit, and the Child and Dependent Care Tax Credit
• Extension of employer credits for sick leave and family leave
• The Employee Retention Tax Credit and the Premium Tax Credit in 2021
• Tax treatment of targeted EIDL advances
• Restaurant Revitalization grants
• Subsidized COBRA continuation coverage
• PPP loan changes for 2021
• Coverage of any other relevant tax provisions

• How to claim the ERTC
  
• Options for taxpayers eligible for the ERTC who did not claim it for 2020
• Eligible employers
• The ERTC and its interaction with PPP loans
• The maximum amount of an employer’s ERTC
• Meaning of full and partial suspension of business
• The deemed election for qualified wages
• Aggregation rules
• Significant declines in gross receipts
• Understand how the new law affects your business clients  
• Tax planning considerations now in effect

Credits and Other information:

• Session Duration: 2 Hours
• Case Studies and Live Q&A session with speaker
  
• PowerPoint presentation for reference
• Session learning level: Introductory
  
• Delivery method: Group Internet Based
• IRS Credits: 2 Tax Hours
• IRS Course ID: PJGWS-T-00020-21-O

Who Will Benefit:

• CPA's
  
• Tax Attorneys
• Accountants
• Tax Compliance Managers
• Other Tax Professionals