COVID Resources

Biden Signs New $1.9 Trillion COVID Relief Legislation into Law

As you can imagine, the new $1.9 trillion COVID Relief Legislation covers a lot of ground. Here are the provisions that we believe will be of greatest interest to you:
Unemployment Benefits
  • If you made less than $150,000 last year, the first $10,200 of unemployment benefits received is tax-exempt. If you have already filed your 2020 federal return, you will need to amend that return to capture a refund.
Recovery Rebates
  • $1,400 per single taxpayers including dependents earning less than $75,000 (married taxpayers earning less than $150,000).
  • Payments phase out fully at $80,000 single and $160,000 married. Calculate your rebate here.
  • Your 2019 federal tax return will be the income measure unless you have already filed your 2020 federal return.
Child Tax Credit
  • Changes apply to 2021 only.
  • $3,600 per child credit ages 0-5, $3,000 per child credit ages 6-17.
  • Credit phase out once income hits $75,000 for single taxpayers, $112,500 for head of household taxpayers, and $150,000 for married taxpayers.
  • IRS to estimate monthly advance payments to taxpayers with a reconciliation of actual credit eligibility made on the 2021 federal tax return.
Child and Dependent Care Credit
  • Changes apply to 2021 only.
  • Credit increased to $4,000 per child with an overall maximum of $8,000.
Family and Sick Leave
  • Employer payroll credit up to $12,000 per employee for COVID-related sick leave.
  • Benefit extended to September 30, 2021.
  • COVID vaccination leave is eligible.
Employee Retention Credit
  • Extends the credit eligibility period through the end of the year.
  • Quarterly revenue decline triggering eligibility is 20%. (Consolidated Appropriations Act)
  • Eligible wages are $10,000 per employee per quarter. (Consolidated Appropriations Act)
  • Credit percentage is 70% of eligible wages (Consolidated Appropriations Act), resulting in a possible credit per employee of $28,000.
As always please contact us if you have questions or would like guidance on how these provisions apply to you.