Tax Changes within the Consolidated Appropriations Act

January 21, 2021

The Consolidated Appropriations Act of 2021 includes over $900 billion in government spending to provide relief for businesses and individuals. The update may include provisions and credits that will likely impact your personal and business taxes in 2020. Marina Parkin (Koontz & Parkin, CPAs), Jo Ann Koontz and Jackie Durham (Koontz & Associates, PL) explain how these individual, business and energy credits and incentives will impact you.

Individual Provisions

1:50 Consolidated Appropriations Act: What and Why?

5:00 Second round of stimulus payments: $600, $1200, $600 (75k and 150k).

8:40 Filing due dates and extensions in 2021.

9:30 Additional unemployment assistance.

12:49 Dealing with increased amount of IRS notices.

16:56 Charitable provisions.

19:32 Educator tax deduction.

20:43 Child tax credit limit.

22:39 Medical expense deduction and health savings accounts.

27:51 Debt forgiveness on principle residence mortgage.

29:40 Coronavirus and disaster related distributions from retirement account

32:43 Emergency Financial Aid Grants

33:19 Education credits.

Business Provisions

37:32 Employee retention credit

40:20 Paid sick and family leave provision

41:25 Meals 100% forgiven for meals at restaurants. "Entertainment" not included.

43:08 Credits for paid family medical leave.

43:36 Net operating lose.

45:40 Qualified property improvements.

Energy Provisions

46:31 Energy credit for windows, doors, roofs, water heater, etc.

47:08 Solar credit extended.


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