Timely and Relevant News: Five Highlights of the New Stimulus Package
The $900 billion Consolidated Appropriations Act of 2021 (2021 CAA) was recently signed into law. Here’s a quick recap of five key highlights:
Stimulus Checks: The new law authorized a second round of $600 checks for people with income that meets the criteria. The checks start to phase out for individuals who earned at least $75,000 in 2019 and $150,000 for joint filers.1
Unemployment Benefits: The law provides up to $300 per week in enhanced benefits through March 2021. The benefits extend to self-employed individuals and gig workers.2
Student Loan Repayment: The 2021 CAA extends the provision that allows employers to repay up to $5,250 annually towards an employee’s student loan payments. The payments are tax-free to the employee.3
Small Businesses: The 50% limit on the deduction for business meals has been lifted. Business meal expenses after December 31, 2020 and before January 1, 2023 may now be fully deductible. Please consult your tax, legal, or accounting professional for more specific information regarding this provision.4
PPP Loans: The new law contains $284 billion in relief for a second round of Payment Protection Program loan funding. Businesses with 300 or fewer employees may be eligible for a second loan. “Second-draw” loans are available through March 31, 2021.5
As 2021 gets underway, expect some additional guidance from regulators on 2021 CAA. Our office will be monitoring and keeping you informed with updates as more information becomes available.
If you have specific questions or would like to discuss your own investment strategy or financial planning needs, we welcome you to call us at 302.234.5655 or email us at email@example.com to set up time to discuss further.