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Congress COVID Christmas Present–UPDATED 12-23-2020
December 22, 2020   |   2020 Tax Year, 2021 Tax Season, IRS, Stimulus, Unemployment compensation

pile of gifts wrapped in metallic gold and metallic red gift paper


UPDATE 12-23-2020: This bill was passed by Congress but President Trump will not sign it.  Thinks the $600 is too small a check for American Taxpayers when the same bill (tentative law) gives millions to foreign countries. Bill has been sent back to Congress for Modification. . .will keep you posted.

Per initial legislative summary from the Tax Research Service, This is part of the Continuing Appropriations Act of 2021.  In short Congress “glued” the stimulus provisions to a law setting the budget and paying bills for other items. . . . initial provisions:

Stimulus payments will be $600 per taxpayer (up to $1,200 per married couple), and $600 for each child with a valid Social Security Number claimed on the tax return.  Stimulus “Round 2”  will follow same rules as stimulus “Round 1”:

1.Everyone who filed a tax return for either 2018 or 2019 tax years and has taxable income under 75,000 single or $150,000 Joint will qualify for the Round 2 payment.

2.  If taxable income is over the $75,000 single or $150,00 joint the “Round 2” payment is reduced.

3. If receiving Social Security, Rail Road Retirement or otherwise not required to file a tax return and applied for a stimulus check (and got it) should get the “Round 2” check also.

4. This payment is not supposed to be seized for State or Federal obligations (e. g. Child Support or prior year taxes) But. .  it’s those “___” computers that control the HOLDS. . ..  so it possible that a check could be held (in error) for a prior bill. . . .

Other Provisions:

Unemployed: Additional $300 per week of Federal unemployment compensation (FPUC) starting after December 26 and ending March 14, 2021.

Teachers: Keep your personal protective equipment purchase receipts— tax deduction available Secretary of the Treasury is ordered to publish rules making personal protective equipment and other supplies for COVID-19  tax deductible as part of educator expense deduction. Such regulations or guidance shall be retroactive to March 12, 2020.

Small Business: There is a 2nd Round of PPP loans available. Contact your Administrator for details.

NOTE: Keep record of the amount of the “Round 1” and “ROUND 2” stimulus payments. They are not  taxable but there will be reconcile on the tax return.  Reconcile will allow those “shorted” to receive their remaining benefit on the tax return.  If “Round 1” was received by Direct deposit, so will “Round 2”. If bank account was closed or changed after  “Round 1” was received, “Round 2” may come as a paper check.

No dates of when checks will be issued.  More information will be coming from the IRS and other Agencies as they carry out the requirements of this legislation. Will keep you posted.

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