Skip to main content

  • Home
  • About 
    • Our Philosophy
    • Our Team
  • Resources
    • Kaizen Capsules
    • Financial Calculators
    • External Resources
    • Events
  • Contact
  • Client Login
  • Career Opportunities

    You are here

  1. Home
  2. Blogs
  3. Highlights of the New Stimulus Package

Highlights of the New Stimulus Package

Submitted by Kaizen Financial Advisors, LLC on January 8th, 2021

 

After a bit of political posturing in December, the $900 billion Consolidated Appropriations Act of 2021 (2021 CAA) was signed into law by President Trump as the COVID-19 pandemic continues to impact employers and employees.

 

Here's a quick recap of five key highlights:

 

Stimulus Checks: The new law, as it stands now, authorized a second round of $600 checks for people with income that meets the criteria. The checks start to phase out for individuals who earned at least $75,000 in 2019 and $150,000 for joint filers. 1

 

Unemployment Benefits: The law provides up to $300 per week in enhanced benefits through March 2021. The benefits extend to self-employed individuals and gig workers. 2

 

Student Loan Repayment: The 2021 CAA extends the provision that allows employers to repay up to $5,250 annually towards an employee's student loan payments. The payments are tax-free to the employee. 3

 

Small Businesses: The 50% limit on the deduction for business meals has been lifted. Business meal expenses after December 31, 2020, and before January 1, 2023, may now be fully deductible. Please consult your tax, legal, or accounting professional for more specific information regarding this provision. 4

 

PPP Loans: The new law contains $284 billion in relief for a second round of Payment Protection Program loan funding. Businesses with 300 or fewer employees may be eligible for a second loan. "Second-draw" loans are available through March 31, 2021. 5

 

Keep in mind, Congress did not extend the temporary waiver of required minimum distributions, which means that those over 72 will have to resume taking their RMDs in 2021.

 

As 2021 gets underway, expect some additional guidance from regulators on 2021 CAA. Our office will keep an eye out for updates and pass information as it becomes available. If you would like to discuss the contents of this article, please reach out to your Kaizen Advisor.

 

Citations

1. USAToday.com, December 31, 2020

2. CNBC.com, December 21, 2020

3. ThinkAdvisor.com, December 30, 2020

4. ThinkAdvisor.com, December 30, 2020

5. Forbes.com, December 29, 2020

 

Tags:
  • Financial Tips

Recent Blog Posts

  • Monthly Economic Update, February 2021
  • How to Prepare for Tax Season
  • 2020 Economic Review

Archived Blog

  • February 2021 (1)
  • January 2021 (3)
  • December 2020 (2)
  • November 2020 (1)
  • October 2020 (5)
  • September 2020 (2)
  • August 2020 (2)
  • July 2020 (5)
  • June 2020 (4)
  • May 2020 (4)
  • April 2020 (1)
  • March 2020 (2)
  •  
  • 1 of 6
  • ››

Categories

  • Estate Planning (1)
  • Financial Tips (27)
  • Investments (1)
  • Market Analysis (12)
  • Medicare (1)
  • Retirement Planning (6)
  • Social Security (1)
  • Tax Planning (3)

Contact Us

Why hire us now? Three simple reasons:

1. It’s always the right time to start making better financial decisions.

2. We help you plug holes in your financial buckets that you may not even know about.

3. We’ll help you have peace of mind, knowing your money is being invested wisely.

Phone: (425) 321-5800
Fax: (425) 321-5800

Email: contactus@kaizenfa.com

4030 Lake Washington Blvd NE, Suite 308, Kirkland, WA 98033

Get Directions

  • Sitemap
  • Legal, privacy, copyright and trademark information
  • ADV 2
  • ADV 3

© 2021 Kaizen Financial Advisors, LLC. All rights reserved.

Website Design For Financial Services Professionals