The Recent COVID-19 Relief Package Is Not Just For Businesses… What’s In It For You?

The recent legislation for the CARES Act has been passed by the U.S. House of Representatives and the U.S. Senate. President Donald J. Trump has signed the bill as well. Included here are provisions and features of the expanded COVID-19 relief package for individuals. (See the business provisions emailed out on December 28, 2020 or visit www.trpsumner.com)

Here’s A Broad Overview And Some Of The Key Provisions For Individuals:

• Additional payments (called Economic Impact Payments) of $600 to individuals making up to $75,000 per year and $1,200 per married couple filing jointly earning up to $150,000 per year (based on 2019 tax returns) — with payments phased out at $99,000 and $198,000 respectively — plus $600 per qualifying child; $Additional discussion is currently taking place in Washington to potentially increase the Economic Recovery Payment from $600 to $2000.
• An additional $300 per week in unemployment benefits, including for the self-employed, gig-economy workers and others in nontraditional employment, through March 14, 2021, with the maximum period for state-paid benefits extended to 50 weeks;
• An extended eviction moratorium;
• Federal rental assistance for families affected by COVID-19, applicable to past due rent, future rent payments, and utility and energy bills;
• Clarification that money purchase pension plans are included among the retirement plans subject to temporary relief measures under the CARES Act (for example, waiver of penalties on COVID-19-related early distributions);
• Potentially larger earned income tax credits and child tax credits for some taxpayers;
• Loosened requirements for medical expense deductions beginning in 2021;
• Extended expansion of charitable contribution tax deductions for non-itemizers through 2021;
• An extended exclusion for certain employer payments of student loans; and
• New rules for disaster-related distributions from retirement plans.

We Are Here To Help!

TRP Sumner will continue to monitor and communicate the provisions that are most likely to affect you in the near future. Please contact us with any questions you may have regarding this, or other matters, at one of our three locations in Fayetteville and Dunn, NC. Going beyond the tax return is what we do everyday! Be Well.