If you are like me, you have been following the news regarding the new pandemic aid relief package Congress passed and the president signed on Sunday, Dec. 27. This package includes stimulus payments similar to the one we received earlier this year. I wanted to take the time to explain two parts of this legislative package.
Another round of stimulus checks have started going out already. Taxpayers with an adjusted gross income (AGI) of up to $75,000 are eligible to receive a full stimulus check of $600. Dependents under the age of 17 will receive $600 as well. Reduced checks will go out to individuals making up to $87,000 a year (down from $99,000 in the spring). The payments are reduced by $5 for every $100 in adjusted gross income over the $75,000 limit for individuals and $150,000 for married couples.
A single tax filer would see no payment if they have an AGI of $87,000 or higher. For a married couple filing jointly with no children, their payment would phase out completely with an AGI of $174,000. For those filing as head of household, the reductions begin at $112,500.
Eligibility for stimulus payments will be determined using 2019 tax returns. If you received Social Security, for either retirement or disability, and did not file because you earned too little to be required to file, you will receive a stimulus payment based on the information sent to the Internal Revenue Service (IRS) on forms SSA-1099 and RRB-1099 in 2019.
You may also be wondering what this relief package means for business owners. This legislation provides full tax deductibility of an expanded list of business costs that were paid with an allowable and forgivable Paycheck Protection Program (PPP) loan. This deductibility is effective for subsequent PPP loans, as well as for business expenses paid with emergency Economic Injury Disaster Loan (EIDL) grants and targeted EIDL advances.
Please visit Sen. Burlison’s official Missouri Senate website at senate.mo.gov/burlison for more legislative and constituent resources.