After much negotiation, a $900 billion stimulus package was finally passed in late December of 2020. Following is our simple summary of the 5,593-page Consolidated Appropriations Act, signed into law on December 27. Let’s dive in.
The $600 direct payments, targeted at individuals making $75,000 a year or less, is also available for filers under "head of household" status earning up to $112,000. Couples who make up to $150,000 a year would get $1,200. Many of the payments were issued in December and landed directly in bank checking accounts that the IRS had on record. If you did not get a check but feel like you qualify, you can track the process through this IRS website.
Expanded PPP Loans
The December stimulus also expanded a number of benefits provided under the Paycheck Protection Program (PPP).
Business Tax Credits and Support
The December stimulus also expanded the timeline for multiple tax credits that were part of the CARES Act from early 2020.
With the new administration in place, there is likely to be continued stimulus and changes in tax rules going forward. We will continue to provide summaries and updates as needed.