{"id":5114,"date":"2021-01-27T22:53:54","date_gmt":"2021-01-27T22:53:54","guid":{"rendered":"http:\/\/s876455381.onlinehome.us\/?p=5114"},"modified":"2021-01-27T22:53:54","modified_gmt":"2021-01-27T22:53:54","slug":"the-taxpayer-certainty-and-disaster-tax-relief-act-of-2020","status":"publish","type":"post","link":"https:\/\/frischfinancial.com\/staging\/the-taxpayer-certainty-and-disaster-tax-relief-act-of-2020\/","title":{"rendered":"The Taxpayer Certainty and Disaster Tax Relief Act of 2020"},"content":{"rendered":"

[et_pb_section fb_built=”1″ _builder_version=”3.22″][et_pb_row _builder_version=”3.25″ background_size=”initial” background_position=”top_left” background_repeat=”repeat”][et_pb_column type=”4_4″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text _builder_version=”3.27.4″ background_size=”initial” background_position=”top_left” background_repeat=”repeat”]<\/p>\n

Part of the Consolidated Appropriations Act of 2021 (CAA)<\/p>\n

<\/p>\n

<\/p>\n

\n<\/p>\n

<\/p>\n

What You Need to Know<\/h2>\n

<\/p>\n

<\/p>\n

The Taxpayer Certainty and Disaster Tax Relief Act of 2020, a part of the Consolidated Appropriations Act of 2021, was signed into law by then-President Trump on December 27, 2020.\u00a0 Containing $900 billion in pandemic relief, here are some highlights of the tax changes for individuals and small businesses:<\/p>\n

<\/p>\n

<\/p>\n

    \n
  1. Stimulus Payment.<\/strong>\u00a0 $600 per individual and any qualifying dependent child, phasing out when incomes exceed $75,000 for individuals, $112,500 for head of household and $150,000 for joint filers. This amount may be followed up with more as President Joe Biden has also proposed a $1.9 trillion coronavirus relief plan which includes a round of stimulus checks of an additional $1,400 for most Americans. \u00a0<\/li>\n
  2. Unemployment Extension.<\/strong> Additional $300 per week of PUA (Pandemic Unemployment Assistance) for 11 additional weeks, expiring March 14, 2021.<\/li>\n
  3. Medical Expense Deduction.<\/strong>\u00a0 Individuals can deduct medical expenses that exceed 7.5% of their adjusted gross income (AGI), if they itemize.\u00a0 This 7.5% has now been permanently restored, in place of the sometimes 10% threshold.<\/li>\n
  4. FSAs (Flexible Spending Accounts).<\/strong>\u00a0 Account balances can be carried forward into 2021 if not fully used in 2020.\u00a0 Please contact your human resources department, as each company may handle things differently.\u00a0 Some plans may also allow participants to change their contribution level during the year, which had previously not been allowed.<\/li>\n
  5. Charitable Giving for those taking the Standard Deduction.<\/strong>\u00a0 The CARES Act in 2020 previously allowed for a $300 above-the-line charitable deduction for those that do not itemize.\u00a0 This has now been extended to 2021 and expanded to allow $600 for a joint filer in 2021 but keeps the $300 cap for 2020.<\/li>\n
  6. Charitable Giving for those that Itemize Deductions.<\/strong>\u00a0 The CARES Act in 2020 previously allowed for a deduction of up to 100% of AGI for cash charitable donations in 2020, and this was extended for 2021.<\/li>\n
  7. Payroll Taxes Repayment Date Extended.\u00a0 <\/strong>2020 Payroll taxes had previously been deferred to early 2021 and have now been extended until December 31, 2021 to repay deferred payroll taxes.<\/li>\n
  8. Business Meals are 100% Tax-Deductible.<\/strong>\u00a0 Businesses are allowed a 100% deduction for meals in 2021 and 2022.\u00a0 This is up from the previous 50% tax-deduction level.<\/li>\n
  9. Lifetime Learning Credit is Expanded.<\/strong>\u00a0 The tuition and related expenses deduction is being replaced by an expanded lifetime learning credit in 2021.\u00a0 The phaseout will align with the American Opportunity Tax Credit at $80,000-$90,000 for single filers and $160,000-$180,000 for joint filers.<\/li>\n
  10. Earned Income Tax Credit and Additional Child Tax Credits are expanded.<\/strong>\u00a0 Individuals will be allowed to use their 2019 earned income, if greater, to calculate these credits for 2020.<\/li>\n
  11. Employer Payments of Student Loans.<\/strong>\u00a0 Extended through 2025, employers can provide up to $5,250 annually for tax-free education assistance to pay off an employee\u2019s qualified student debt.<\/li>\n
  12. Qualified Principal Residence debt forgiveness exclusion is extended through 2025.<\/strong>\u00a0 For those who go through a short sale, the forgiven debt on a primary residence may be excluded from income through 2025.\u00a0 Starting in 2021, the maximum amount is reduced to $750,000 for joint filers (from $2 million) and $375,000 for single filers (from $1 million).<\/li>\n
  13. RMDs.<\/strong> There is no change to Required Minimum Distributions (RMDs).\u00a0 They are back to \u201cnormal\u201d and must be taken again in 2021.<\/li>\n
  14. Expansion of the Employee Retention Credit (ERC).\u00a0 <\/strong>The CARES Act provided for a tax credit to certain companies who continued to pay employees during the coronavirus lockdown.\u00a0 This is expanded and extended through June 30, 2021.<\/li>\n
  15. PPP Round 2.\u00a0 <\/strong>The Consolidated Appropriations Act also reopened the Paycheck Protection Program (PPP) to allow for additional loans to qualifying small businesses until March 31, 2021.<\/li>\n<\/ol>\n

    <\/p>\n

    <\/p>\n

    As the pandemic continues to cause financial challenges for businesses and individuals nationwide, relief programs offer some assistance.\u00a0 As previously mentioned, additional stimulus is currently being negotiated in Congress and we will keep you updated.\u00a0 Please contact us <\/a>if you have any questions.<\/p>\n

    [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”3.26″ custom_padding=”4px||4px|||” saved_tabs=”all”][et_pb_row column_structure=”1_4,1_2,1_4″ use_custom_gutter=”on” gutter_width=”2″ _builder_version=”3.26″ background_color=”rgba(117,117,117,0.3)”][et_pb_column type=”1_4″ _builder_version=”3.26″][et_pb_image src=”https:\/\/frischfinancial.com\/staging\/wp-content\/uploads\/2019\/12\/bottombrand.png” align=”center” _builder_version=”3.26″ transform_scale=”164%|164%” width=”67%” width_tablet=”35%” width_phone=”” width_last_edited=”on|tablet” module_alignment=”center” custom_margin=”|||0px|false|false” custom_margin_tablet=”|||32px|false|false” custom_margin_phone=”” custom_margin_last_edited=”on|tablet” custom_padding=”9px|73px|||false|false” mix_blend_mode=”hard-light” module_alignment_tablet=”center” module_alignment_phone=”” module_alignment_last_edited=”on|phone”][\/et_pb_image][\/et_pb_column][et_pb_column type=”1_2″ _builder_version=”3.26″][et_pb_text _builder_version=”3.27.4″ text_text_color=”#000000″ custom_margin=”|||-102px|false|false” custom_padding=”|27px||0px||”]<\/p>\n

    About Us<\/strong><\/h3>\n

    Our mission is to help our clients protect, preserve, and enhance their wealth. We achieve this by combining our investment management expertise with our financial planning services. Our co-management approach offers customization of portfolios and client involvement. As a fee only advisor, we do not sell any products and therefore, provide unbiased advice. Our clients always come first.<\/span><\/p>\n

    [\/et_pb_text][\/et_pb_column][et_pb_column type=”1_4″ _builder_version=”3.26″][et_pb_text _builder_version=”3.27.4″ text_text_color=”#000000″]<\/p>\n

    Reach Us<\/strong><\/h3>\n

    516.694.7900 (Long Island, NY)
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    212.983.8444 (New York, NY)
    914.696.0800 (White Plains, NY)
    email@s876455381.onlinehome.us<\/a><\/p>\n

    [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.6.6″ _module_preset=”default”][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"

    [et_pb_section fb_built=”1″ _builder_version=”3.22″][et_pb_row _builder_version=”3.25″ background_size=”initial” background_position=”top_left” background_repeat=”repeat”][et_pb_column type=”4_4″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text _builder_version=”3.27.4″ background_size=”initial” background_position=”top_left” background_repeat=”repeat”] Part of the Consolidated Appropriations Act of 2021 (CAA) What You Need to Know The Taxpayer Certainty and Disaster Tax Relief Act of 2020, a part of the Consolidated Appropriations Act of 2021, was signed into law by then-President Trump […]<\/p>\n","protected":false},"author":3,"featured_media":5115,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"\n

    Part of the Consolidated Appropriations Act of 2021 (CAA)<\/p>\n\n\n\n

    \n\n\n\n

    What You Need to Know<\/h2>\n\n\n\n

    The Taxpayer Certainty and Disaster Tax Relief Act of 2020, a part of the Consolidated Appropriations Act of 2021, was signed into law by then-President Trump on December 27, 2020.\u00a0 Containing $900 billion in pandemic relief, here are some highlights of the tax changes for individuals and small businesses:<\/p>\n\n\n\n

    1. Stimulus Payment.<\/strong>\u00a0 $600 per individual and any qualifying dependent child, phasing out when incomes exceed $75,000 for individuals, $112,500 for head of household and $150,000 for joint filers. This amount may be followed up with more as President Joe Biden has also proposed a $1.9 trillion coronavirus relief plan which includes a round of stimulus checks of an additional $1,400 for most Americans. \u00a0<\/li>
    2. Unemployment Extension.<\/strong> Additional $300 per week of PUA (Pandemic Unemployment Assistance) for 11 additional weeks, expiring March 14, 2021.<\/li>
    3. Medical Expense Deduction.<\/strong>\u00a0 Individuals can deduct medical expenses that exceed 7.5% of their adjusted gross income (AGI), if they itemize.\u00a0 This 7.5% has now been permanently restored, in place of the sometimes 10% threshold.<\/li>
    4. FSAs (Flexible Spending Accounts).<\/strong>\u00a0 Account balances can be carried forward into 2021 if not fully used in 2020.\u00a0 Please contact your human resources department, as each company may handle things differently.\u00a0 Some plans may also allow participants to change their contribution level during the year, which had previously not been allowed.<\/li>
    5. Charitable Giving for those taking the Standard Deduction.<\/strong>\u00a0 The CARES Act in 2020 previously allowed for a $300 above-the-line charitable deduction for those that do not itemize.\u00a0 This has now been extended to 2021 and expanded to allow $600 for a joint filer in 2021 but keeps the $300 cap for 2020.<\/li>
    6. Charitable Giving for those that Itemize Deductions.<\/strong>\u00a0 The CARES Act in 2020 previously allowed for a deduction of up to 100% of AGI for cash charitable donations in 2020, and this was extended for 2021.<\/li>
    7. Payroll Taxes Repayment Date Extended.\u00a0 <\/strong>2020 Payroll taxes had previously been deferred to early 2021 and have now been extended until December 31, 2021 to repay deferred payroll taxes.<\/li>
    8. Business Meals are 100% Tax-Deductible.<\/strong>\u00a0 Businesses are allowed a 100% deduction for meals in 2021 and 2022.\u00a0 This is up from the previous 50% tax-deduction level.<\/li>
    9. Lifetime Learning Credit is Expanded.<\/strong>\u00a0 The tuition and related expenses deduction is being replaced by an expanded lifetime learning credit in 2021.\u00a0 The phaseout will align with the American Opportunity Tax Credit at $80,000-$90,000 for single filers and $160,000-$180,000 for joint filers.<\/li>
    10. Earned Income Tax Credit and Additional Child Tax Credits are expanded.<\/strong>\u00a0 Individuals will be allowed to use their 2019 earned income, if greater, to calculate these credits for 2020.<\/li>
    11. Employer Payments of Student Loans.<\/strong>\u00a0 Extended through 2025, employers can provide up to $5,250 annually for tax-free education assistance to pay off an employee\u2019s qualified student debt.<\/li>
    12. Qualified Principal Residence debt forgiveness exclusion is extended through 2025.<\/strong>\u00a0 For those who go through a short sale, the forgiven debt on a primary residence may be excluded from income through 2025.\u00a0 Starting in 2021, the maximum amount is reduced to $750,000 for joint filers (from $2 million) and $375,000 for single filers (from $1 million).<\/li>
    13. RMDs.<\/strong> There is no change to Required Minimum Distributions (RMDs).\u00a0 They are back to \u201cnormal\u201d and must be taken again in 2021.<\/li>
    14. Expansion of the Employee Retention Credit (ERC).\u00a0 <\/strong>The CARES Act provided for a tax credit to certain companies who continued to pay employees during the coronavirus lockdown.\u00a0 This is expanded and extended through June 30, 2021.<\/li>
    15. PPP Round 2.\u00a0 <\/strong>The Consolidated Appropriations Act also reopened the Paycheck Protection Program (PPP) to allow for additional loans to qualifying small businesses until March 31, 2021.<\/li><\/ol>\n\n\n\n

      As the pandemic continues to cause financial challenges for businesses and individuals nationwide, relief programs offer some assistance.\u00a0 As previously mentioned, additional stimulus is currently being negotiated in Congress and we will keep you updated.\u00a0 Please contact us <\/a>if you have any questions.<\/p>\n","_et_gb_content_width":"1080"},"categories":[15],"tags":[],"yoast_head":"\nThe Taxpayer Certainty and Disaster Tax Relief Act of 2020 - Frisch Financial Group<\/title>\n<meta name=\"description\" content=\"The Taxpayer Certainty and Disaster Relief Act of 2020, a part of the Consolidated Appropriations Act of 2021\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Organization\",\"@id\":\"https:\/\/frischfinancial.com\/staging\/#organization\",\"name\":\"Frisch Financial Group\",\"url\":\"https:\/\/frischfinancial.com\/staging\/\",\"sameAs\":[],\"logo\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/frischfinancial.com\/staging\/#logo\",\"inLanguage\":\"en-US\",\"url\":\"\",\"contentUrl\":\"\",\"caption\":\"Frisch Financial Group\"},\"image\":{\"@id\":\"https:\/\/frischfinancial.com\/staging\/#logo\"}},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/frischfinancial.com\/staging\/#website\",\"url\":\"https:\/\/frischfinancial.com\/staging\/\",\"name\":\"Frisch Financial Group\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\/\/frischfinancial.com\/staging\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/frischfinancial.com\/staging\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/frischfinancial.com\/staging\/the-taxpayer-certainty-and-disaster-tax-relief-act-of-2020\/#primaryimage\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/frischfinancial.com\/staging\/wp-content\/uploads\/2021\/01\/frisch-taxpayer-certainty-a.png\",\"contentUrl\":\"https:\/\/frischfinancial.com\/staging\/wp-content\/uploads\/2021\/01\/frisch-taxpayer-certainty-a.png\",\"width\":700,\"height\":466},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/frischfinancial.com\/staging\/the-taxpayer-certainty-and-disaster-tax-relief-act-of-2020\/#webpage\",\"url\":\"https:\/\/frischfinancial.com\/staging\/the-taxpayer-certainty-and-disaster-tax-relief-act-of-2020\/\",\"name\":\"The Taxpayer Certainty and Disaster Tax Relief Act of 2020 - 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