The Senate passed President Biden’s $1.9 trillion COVID-19 relief package late Friday night. While the bill must go back to the House of Representatives for reconciliation with the bill they passed in late February, it is a major step forward in getting financial relief to those in need.
Here’s what you need to know about the COVID-19 Relief Bill:
- It extended the $300 weekly unemployment benefit through September 6th, thereby avoiding the deadline of mid-March for that benefit established by the December 2020 stimulus bill.
- It promises $1,400 in stimulus money to a narrower selection of individuals than had been eligible for prior stimulus checks. Individuals who earn more than $80,000 and married couples earning more than $160,000 combined are excluded.
- The $15 minimum wage provision that was a highlight of the House bill did not make it into the Senate’s version.
- It allows an individual’s first $10,200 earned through unemployment to avoid taxation. This applies to those who made less than $150,000 in adjusted gross income in 2020. If you earned more than $10,200 and have already filed your 2020 tax returns you may consider amending your return to reflect that information. Talk to a tax professional to see if such an amendment would change your tax liability.
The Senate bill included many other provisions, including a change to the child tax credit, providing further relief to state and local governments, and funding for COVID-19 testing, vaccinations, and contact tracing. We will have to wait for the reconciled bill to see if any of these provisions change, but it is notable that the bill was passed and is heading towards reconciliation. Stay tuned.
Questions? Let Kelly know.
Kelly Barry is a member of the firm’s Business and Corporate Department and Taxation Practice Group assisting clients in a wide range of corporate matters, including those involving transactional law, tax, and trusts and estates. She can be reached at firstname.lastname@example.org or 856.382.3305.