CONSOLIDATED APPROPRIATIONS ACT PART ONE

Consolidated appropriations act part one. The Consolidated Appropriations Act of 2021, was signed into law on December 27, 2020 and contains many tax and non-tax provisions. The final Act was published on January 3, 2021 as H.R. 133. While not a comprehensive list, this list will go over the changes that impact taxpayers. Title Two–Assistance to Individuals, Families and Businesses. Unemployment Insurance. An extension to March 14, 2021 for those currently receiving, but not yet exhausting benefit and for relief for government entities and nonprofit organizations. It limits pandemic unemployment assistance to any week prior to April 5, 2021, so no benefits payable for any week beginning after April 5, 2021. Increases maximum number of weeks from 39 to 50. ads additional unemployment funding of $300 per week for weeks of unemployment beginning on or after December 26, 2020 and ending before March 14, 2021 (previously was $600 from the date the State entered into agreement with the federal government and ending on or before July 31, 2020). Consolidated appropriations act part one.

Subtitle B-Covid related Tax Relief Act of 2020. Section 272–Additional 2020 Recovery Rebates for Individuals. Additional Recovery Rebates for Individuals, this new credit is in addition to the credit previously paid. $600 per adult ($1200 married filing jointly) plus $600 for each child for individuals with adjusted gross income up to $75,000 per taxpayer, $112,500 for married filing jointly. Credits are not available for taxpayers with income over $87,000, $124,500 for head of household, or $174,000 for married filing jointly.

Section 274–Extension of Certain Deferred Payroll Taxes.  Delay of payment of Employer payroll taxes–employers and self employed may defer their Social Security tax paid to an employee on a pay date during the period September 1, 2020 and ending December 31, 2020 but only if the amount of such wages or compensation paid for a bi-weekly pay period is less than the threshold amount of $4000. The taxes must be withheld and paid back between January 1, 2021 and December 31, 2021. Interest will begin accruing January 1, 2022. In taking advantage of this, most businesses should prepare for it, so as not to get behind on taxes and end up needing tax resolution services.