How The American Rescue Plan Affects 2021 Taxes, Part 1

Image of a bouy with the word "rescue" on it

CHild & Dependent Care Credit Increased For 2021 Only

The new law increases the amount of the credit and the percentage of employment-related expenses for qualifying care
considered in calculating the credit, modifies the phase-out of the credit for higher earners, and makes it refundable for eligible taxpayers. Continue reading “American Rescue Plan, Part 1”

SBA to Provide $28.6 Billion in Grants For Restaurants & Bars

-The Restaurant Revitalization Fund (RRF)

restaurant full of customers

The $1.9 trillion stimulus package, known as the American Rescue Package (the “Rescue Package”), enacted on March 11, 2021, established a $28.6 billion Restaurant Revitalization Fund (“Restaurant Fund”) for restaurants and other food establishments. Section 5003 of the Rescue Package instructs the Small Business Administration (“SBA”) to award tax-free federal grants (“Grants”) to eligible entities. Continue reading “SBA to Provide $28.6 Billion”

Businesses Can Temporarily Deduct 100% Beginning Jan. 1, 2021-Dec.31,2022Money on a table

The Treasury Department and the Internal Revenue Service today issued Notice 2021-25 providing guidance under the Taxpayer Certainty and Disaster Relief Act of 2020. The Act added a temporary exception to the 50% limit on the amount that businesses may deduct for food or beverages. The temporary exception allows a 100% deduction for food or beverages from restaurants. Continue reading “Businesses Can Temporarily Deduct 100%”