Important information you should know about the new Stimulus Act:
1. A new round of PPP loans. An existing loan can be increased.
2. EXPENSES PAID WITH FORGIVEN LOANS ARE DEDUCTIBLE.
3. 100% of business meals deductible in 2021 and 2022.
4. Medical expense exclusion made permanent at 7.5% of AGI.
5. Stimulus payments are half of the first act. Income thresholds are the same as the first set, but phase out at a lower level: (87,000 for single, and 174,000 for married).
6. Overpayments do not have to be repaid.
7. Unemployment benefit payments extended to March 14, 2021.
8. Stimulus payments will be direct deposited, or be checks or debit cards.
Separately, tax return processing for individuals will begin Feb. 15.
Refunds for those filers claiming earned income or additional child tax credits will be delayed until the first week of March.