On 16 December 2020, people walk past the US Capitol in Washington, DC – Leaders of Congress continue [] December 2020 announced that it was nearing a long-awaited deal on a stimulus package for the U.S. economy, while the Federal Reserve will provide updated projections on uncertain outlook, while a federal aid package to help businesses and unemployed people in trouble is seen as essential to to get the world’s largest economy back on its feet in the face of the resurgence of Covid-19 infections (Photo by ANDREW CABALLERO-REYNOLDS / AFP) (Photo by ANDREW CABALLERO-REYNOLDS / AFP via Getty Images)

Congress has finally agreed on a COVID relief package, making it the first major congressional stimulus measure since the signing of the Coronavirus Aid, Relief and Economic Security Act or the CARES Act in March 2020

There is no text available yet (I will post a link when it is available) Based on reports from stakeholders, here’s a quick rundown of what’s likely to have been put on the bill – and what’s not.Note that this may change as it hasn’t been voted on with Sen. Mitch McConnell (R-KY) promises to do this asap (I will update it when I have more details)

Unemployment Benefits The bill would extend the pandemic unemployment insurance programs created under the CARES Act by 11 weeks through March 2021 The bill would also extend federal unemployment insurance benefits, but at half the previous rate (only $ 300 per week)

& Small Business Assistance Paycheck Protection Program The bill would expand the PPP program to allow some businesses to get an additional loan Also included? Simplifying the loan for those over 150Borrow $ 000 or less However, it is still not known if business expenses paid with the proceeds of PPP loans are fully tax deductible – some deductibility was expected to be included but with safeguards (we must be on wait for the final text for details)

From Rep. Nancy Pelosi (D-CA): The agreement includes over $ 284 billion in first and second renewable PPP loans, expanded PPP eligibility for nonprofits and local newspapers, television and radio stations, major changes to it PPP for the Smallest Businesses and Nonprofits Better To Support Independent Restaurants And $ 15 Billion For Live Venues, Independent Theaters And Cultural Establishments The agreement also includes $ 20 billion in targeted EIDL grants serving many smaller businesses in Main Street are vital

Earned Income Tax Credit & Tweaks For Child Tax Credit Agreement Allows Families To Earn EITC and CTC Based On Their 2019 Income This has a significant impact on families whose incomes have declined due to COVID

Transportation Finance The bill is expected to extend the Payroll Support Program (PSP), which provides loans to the ailing aviation industry The proposal would also provide additional funding for airports, coach and bus companies, public transportation systems, and Amtrak

Healthcare Including Vaccine Development & Distribution Bill would send more to hospitals and health care providers and spend more money on testing Proposal would also provide millions in grants and funding for vaccine development, infrastructure and distribution

Student Loan Extensions The bill would extend the forbearance provisions for federal student loans (these currently expire on Dec. January 2021)

Rent support The package would extend the eviction moratorium to 31 There are also funds for rent relief that can be used for future rent payments and incidental costs, as well as for rent back owed or incidental costs

Food Aid The Agreement Is Expected To Increase The Benefits Of Grocery Brands (Supplemental Nutrition Assistance Program, or SNAP) It would also extend the Pandemic EBT program to families with children in childcare and support the Special Nutritional Complementary Program for Women, Infants and Children (WIC) so that participants can buy additional fruits and vegetables that seniors are also included, with funds for seniors -Nutritional services, including meals on wheels, and the Commodity Supplemental Food Program to bring food boxes to more seniors

Post Office The proposal makes it clear that the $ 10 billion aid originally earmarked for the USPS under the CARES Act USD would not require any repayment

Excess Funds The bill was held up due to controversy over what to do with excess funds from the CARES bill, with Democrats seeking to reallocate it and many Republicans standing with Treasury Secretary Mnuchin to add those funds to the general fund to be returned The final invoice is expected to contain the compromise language

Stimulus checks A last-minute push to include stimulus checks was successful New checks worth USD 600 per person (yes, even for children) are included in the new aid package. Checks are still running out for those who 75Earn $ 000 (150$ 000 for married couples filing together) According to reports, adult relatives – those over the age of 18 – are still not qualified; however, those filing with someone using an ITIN can collect a check (but not the person with the ITIN)

3 Martini Lunches Are Back The bill reportedly includes a provision to increase business meal deduction to 100% (currently 50%) for 2021 and 2022

State and Local Funding Originally on the bill, state and local funding was removed, but Congress extended the deadline for states and cities to use CARES pre-approved money in states like mine (Pennsylvania) that don’t Having spent all of their funding, they would lose if it were not spent by the end of the year The deal would instead extend the deadline to the end of next year

Liability Protection Providing corporate liability protection as a result of the pandemic has been a serious stumbling block between the Senate and the House of Representatives. The Framework had originally indicated that there is “in principle a greeting to negotiate in good faith,” but it is stalled

CARES Act Corrections / Clarifications to Stimulus Checks Earlier this year House hoped for language that would replace “dependent” with “qualifying dependent” for the purposes of the first stimulus check. Additional corrections included coding payments to Avoiding offsetting and clarifying that representative payees might receive checks There is no indication that these corrections / clarifications will be included in this latest support package

The total price of the bill is estimated at $ 2.3 trillion, but that includes about $ 1.3 trillion in government spending

Years ago I was sitting in law school in Moot Court in an oversized, itchy blue suit. It was a terrible experience In a desperate attempt to avoid something

Years ago I was sitting in law school in moot court in an oversized, itchy blue suit It was a terrible experience In a desperate attempt to avoid something like this in the future, I enrolled for a tax rate I loved it I have signed up for someone else Before I knew it, I earned an LL in Taxation in addition to my JD

While in law school, I did an internship in the IRS Legal Department. At IRS, I participated in the review and review of federal estate tax returns. On one such review, the opposing attorney read my report, looked at his file, and said, “Gentlemen, you is spot on “I almost passed out From there it was just a short jump to practicing, teaching, writing and breathing taxes. Just like that, Taxgirl® was born

Stimulus Check, Stimulus Checks, Covid Relief Package, New Stimulus Check

World News – USA – Congress reaches agreement on Relief Package, including new Stimulus Checks

Source: https://www.forbes.com/sites/kellyphillipserb/2020/12/20/congress-reaches-an-agreement-on-a-relief-package-including-new-stimulus-checks/