By Alyssa Reed
For the last few weeks, it seems every day has been marked with headlines regarding the status
of economic stimulus legislation.
While another round seems to be stalling out, the official coronavirus relief and government funding bill that was signed into law earlier this week does have some key elements highlighted below:
Stimulus Payments
- The new coronavirus stimulus legislation contains a provision for additional stimulus payments to individuals. The full amount is $600 per individual, $1,200 per couple, and $600 per child. There are income thresholds that may reduce the full amount.
100% on Meals
- The 100% business meal deduction has been restored for the next two tax years to assist with the restoration of the restaurant industry.
100% PPP Deduction
- The new stimulus package allows deduction of expenses for which PPP loan proceeds were used.
Second Round of PPP Loans
- Many small businesses, non-profits, and independent contractors may be eligible for the new round of PPP loans. Borrowers may also qualify for a loan even if they received funds in the PPP’s first round. Qualified borrowers must show a loss of at least 25% of gross receipts in any quarter during 2020 when compared to the same quarter in 2019.