Tax Summary

1 2021 Coronavirus Tax Summary Publication Date: March 2021 ii Coronavirus Tax Summary (Major Acts' Selected Provisions - Related Tax Legislation & Pronouncements) Edited By Danny C. Santucci The author is not engaged by this text, any accompanying electronic media, or lecture in the rendering of legal, tax, accounting, or similar professional services. While the legal, tax, and accounting issues discussed in this material have been reviewed with sources believed to be reliable, concepts discussed can be affected by changes in the law or in the interpretation of such laws since this text was printed. For that reason, the accuracy and completeness of this information and the author's opinions based thereon cannot be guaranteed.

2 In addition, state or local tax laws and procedural rules may have a material impact on the general discussion. As a result, the strategies suggested may not be suitable for every individual. Before taking any action, all references and citations should be checked and updated accordingly. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert advice is required, the services of a competent professional person should be sought. -From a Declaration of Principles jointly adopted by a committee of the american Bar association and a Committee of Publishers and Associations.

3 No copyright is asserted on government materials. Copyright March 2021 Danny Santuccii Table of Contents High-Deductible Health Plans (3/11/20) .. 1 Families First Coronavirus Response Act .. 1 Employee Paid Sick, Family & Medical Leave .. 1 Employer Tax Credits .. 2 Paid Sick Leave (EPSLA) Credit .. 2 Paid Family & Medical (EMFLEA) Credit .. 3 Payment for the Cost of Providing Leave .. 4 Self-Employed Individuals .. 4 Small Business Exemption .. 5 Effective 5 Federal Gift & GST Tax Filing & Payment Deadline (3/20/20) .. 5 Income Tax Filing & Payment Deadline (3/20-21/20) .. 5 Coronavirus Aid, Relief, and Economic Security (CARES) Act .. 8 Recovery Rebate/Credit (Economic Impact Payments) .. 8 Eligibility .. 8 Identification Number.

4 8 Backward Calculation .. 9 Advance Refund .. 9 Noticing Requirement .. 9 Phaseout .. 9 Retirement Funds - Early Withdrawal Tax & Loan Limits .. 10 Distributions & 10% Penalty .. 10 Coronavirus Related Distribution .. 10 Repayments of Coronavirus-Related Distributions .. 11 Loan Limits .. 11 Temporary Waiver of RMD Rules .. 11 Application .. 12 Charitable Deductions .. 12 $300 Above-the-Line Charitable Deduction .. 12 Qualified Charitable 12 Individual Cash Contribution Limit During 2020 .. 13 Qualified Contributions .. 13 Corporate Cash Contribution Limit During 2020 .. 13 Contribution Of Food Inventory During 2020 .. 13 Repayment of Employee Student Loans .. 14 Eligible Student Loan Repayments .. 14 Employee Retention Payroll Tax Credit.

5 14 Penalty Relief .. 15 Eligible Employers .. 16 Household Employers .. 16 Self-Employed Individuals .. 17 Partial Business Suspension .. 17 Reduction in Quarterly Gross Receipts .. 17 Wages .. 18 Employers With Less Than 100 Employees .. 18 Employers With More Than 100 Employees .. 18 Refundable Credit .. 19 ii Employer Payroll Tax Delay .. 19 Applicable Date .. 20 Estimated Tax Payments .. 20 Net Operating Losses .. 21 Loss Limitation For Noncorporate Taxpayers .. 21 Business Interest Limitation .. 22 Qualified Improvement Property .. 22 Paycheck Protection Program & Loan Forgiveness .. 23 Who Can Apply? .. 23 Eligible Debt Forgiveness .. 24 Definitions .. 24 Unemployment Benefits .. 24 Advancing of Credits for Paid Sick & Family Leave.

6 24 High Deductible Health Plans & Telehealth Services .. 25 Section 1031 & Rollover 25 Consolidated Appropriations Act (CAA) .. 28 COVID-related Tax Relief Act of 2020 (COVIDTRA) .. 28 Additional (Second) Recovery Rebate - 6428A .. 28 Advance 28 Changes to CARES Economic Impact Payments (EIPs) - 6428(c)&(g) .. 28 Educator Expense Deduction Expanded to PPE - 62 .. 29 Deduction Of Expenses Paid With Forgiven PPP Debt - 61 & 162 .. 29 Deduction Of Expenses Paid With Forgiven EID Loans & Grants .. 29 Debt Discharge Reporting Waived - 6050P .. 29 Authority To Share .. 29 SSI & SSDI Information - 6103(k)(15) .. 29 Information for Educational Institutions - 6103(l)(13).. 30 american Opportunity & Lifetime Learning Credits - 25A.

7 30 Money Purchase Plan Virus-Related Distributions - 401 .. 30 Net Operating Farming Loses - 172 .. 30 Economic Aid to Hard-Hit Small Businesses, Nonprofits, & Venues Act .. 30 Paycheck Protection Program Round 2 (PPP-2) .. 30 Eligibility .. 31 Section 501(c)(6) Not-For-Profit Organizations .. 31 Loan Amount Maximum .. 31 Time to Spend Loan Proceeds (Covered Period) .. 31 Use of Loan Funds Qualifying for Forgiveness .. 32 Taxation .. 32 Taxpayer Certainty and Disaster Tax Relief Act of 2020 (TCDTR) .. 32 Medical Expense Percentage Limit - 213 .. 32 Energy Efficient Commercial Property Deduction - 179D .. 32 Unified Phaseout for AOTC & Lifetime Learning Credit - 25A .. 33 Higher Education Tuition Deduction - 222 .. 33 New Markets Tax Credit - 45D.

8 33 Work Opportunity Tax Credit (WOTC) - 51 .. 33 Residential Mortgage Debt Relief - 108 .. 33 Motorsports Entertainment Complexes - 168(i)(15) .. 33 Special Film & TV Production Expensing - 181 .. 34 Family & Medical Leave Credit - 45S .. 34 Employer-Provided Educational Assistance - 127 .. 34 Renewable Energy Production Tax Credit - 45 & 38 .. 34 Deductible Mortgage Insurance Premiums - 163 .. 34 Residential Energy-Efficient Improvements & Property - 25C .. 35 iii Credit For Fuel Cell Vehicles - 30B .. 35 Alternative Fuel Vehicle Refueling Property - 30C .. 35 Plug-in 2-Wheeled Electric Vehicles (Motorcycles) - 30D(g) .. 35 Credit for Energy New Efficient Homes - 45L .. 35 Personal Solar Property Credit - 25D .. 35 american Rescue Plan Act Of 2021.

9 38 Recovery Rebates .. 38 Income Limitations .. 38 Qualified Taxpayers .. 38 Child Tax Credit - 24 .. 38 Phaseout .. 39 Advance Payments .. 39 Earned Income Tax Credit - 32 .. 39 Dependent Care Tax Credit - 129 .. 39 Unemployment Benefits .. 40 Exclusion of Forgiven Student Loans - 108 .. 40 Paycheck Protection Program (PPP) .. 40 Paid Sick and Family Leave Credits .. 40 Employee Retention Tax Credit .. 41 Limit on Excess Business Losses - 461(l) .. 41 $1 Million Compensation Limit - 162(m) .. 41 Retirement Plan Funding .. 41 COBRA Coverage Assistance .. 41 Refundable Payroll Tax Credit .. 42 Notices .. 42 Tax Treatment of COVID-19 Relief .. 42 1 High-Deductible Health Plans (3/11/20) The Internal Revenue Service has announced that high-deductible health plans (HDHPs) can pay for 2019 Novel Coronavirus (COVID-19)-related testing and treatment, without jeopardizing their status.

10 This also means that an individual with an HDHP that covers these costs may continue to contribute to a health savings account (HSA). In Notice 2020-15, the IRS states that health plans that otherwise qualify as HDHPs will not lose that status merely because they cover the cost of testing for or treatment of COVID-19 before plan deductibles have been met. The IRS also noted that, as in the past, any vaccination costs continue to count as preventive care and can be paid for by an HDHP. This notice applies only to HSA-eligible HDHPs. Employees and other taxpayers in any other type of health plan with specific questions about their own plan and what it covers should contact their plan. Families First Coronavirus Response Act The Families First Coronavirus Response Act (FFCRA) was signed by President Trump on March 18, 2020.