The Consolidated Appropriations Act (CAA) was signed into law on Dec. 27. 2020.   This law provides relief in response to the COVID-19 pandemic for businesses and individuals. For individuals, another round of “recovery rebate” payments will be issued.   For businesses and other employers, the Paycheck Protection Program (PPP) loan program has been expanded.   The legislation includes some tax relief as well.

A brief overview

Here’s a brief overview of some of the tax-related provisions that may affect you or your business:

Individuals
  • Permanent reduction of adjusted gross income (AGI) floor to 7.5% for medical expense deductions
  • Extended nonitemizer deduction for up to $300 of cash donations ($600 for married couples filing jointly) to qualified charities through 2021
  • Extended 100% of AGI deduction limit for cash donations to qualified charities through 2021
  • Extended exclusion for certain employer payments of student loans through 2025
Businesses and other employers
  • Clarification of tax treatment for PPP loans, certain loan forgiveness and other financial assistance under COVID-19 legislation
  • Extended payroll tax credits for paid leave required under the Families First Coronavirus Response Act through March 2021
  • Extended and expanded tax credits for retaining employees under the Coronavirus Aid, Relief and Economic Security (CARES) Act through June 2021
  • 100% business meals deduction for food and beverages provided by restaurants in 2021 and 2022
  • Extended Work Opportunity credit through 2025
  • Extended New Markets credit through 2025
  • Extended family medical leave credit through 2025

More details

This is just a brief look at some of the most significant tax-related provisions in this 5,500+ page legislation.    Contact our tax professionals for more details on how the CAA may affect you at 315.424.1120 or info@gsacpas.com.

ABOUT GROSSMAN ST. AMOUR CPAs PLLC
Grossman St. Amour CPAs PLLC virtual doors are open and we are assisting clients with audit, accounting, and tax issues as well as matters relating to COVID-19.  As a certified public accounting firm located in central New York, Grossman St. Amour CPAs has been in business for 63 years.

Grossman St. Amour CPAs provides businesses and individuals with accounting, audit, taxation, business planning and valuation, financial planning, investment consulting, and fraud examination and deterrence services.  For more information about how Grossman St. Amour CPAs PLLC can be of service to you, contact our professionals.