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. Please contact your tax advisor for more details on how the CAA may affect you.
