COVID-19 tax news and information

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May 11, 2021

IRS clarifies pandemic relief for dependent care assistance programs

Dependent care assistance program benefits carried over or available during an extended claims period under special temporary COVID-19 relief provisions retain their status as excludable from employees’ gross income and wages, the IRS explains in a notice.

May 1, 2021

Cafeteria plans may be amended during pandemic

The IRS issued guidance on how employers can amend their health flexible spending arrangements and dependent care assistance programs to respond to the coronavirus pandemic.

May 1, 2021

Deductibility of business expenses funded by PPP loans

This item discusses whether expenses paid for with PPP loans can be deducted as business expenses.

May 1, 2021

Casualty losses related to COVID-19 when there are no physical losses

The COVID-19 pandemic brings taxpayers into uncharted territory with regard to casualty losses without physical damage but where there is still an undeniable impact to the business, especially where property values are permanently reduced due to the pandemic.

May 1, 2021

Guidance for 2020 employee retention credit issued

The IRS issued guidance on the employee retention credit in effect for qualified wages paid after March 12, 2020, through Dec. 31, 2020, including how it interacts with PPP loans.

May 1, 2021

IRS says educators may deduct cost of personal protective equipment

Educators who have unreimbursed expenses for personal protective equipment, disinfectant, and other supplies used to prevent the spread of COVID-19 in the classroom can deduct those expenses.

May 1, 2021

American Rescue Plan Act enacts many tax provisions

The $1.9 trillion coronavirus relief bill that passed Congress contained many tax provisions, including changes to the child tax credit, making certain unemployment benefits tax-free in 2020, and a $1,400 recovery rebate credit for many individuals.

April 29, 2021

Property tax relief planning during times of COVID

While the impact of lost wages and retail receipts was felt almost immediately in city coffers, property assessments are only now starting to take effect — and most assessors have massive budget holes to fill.

April 26, 2021

2021 child tax credit, EITC, and premium tax credit limits updated

The IRS issued guidance on the amount of and limitations on the child tax credit, earned income tax credit, and premium tax credit available for taxpayers for the 2021 tax year as a result of changes to those provisions enacted by the American Rescue Plan Act of 2021, P.L. 117-2.

April 22, 2021

Expenses paid with 2020 PPP loans can be deducted on 2021 tax returns

The IRS issued guidance on a safe harbor permitting qualifying taxpayers who have PPP loans, who did not deduct expenses related to those loans paid or incurred in 2020 on their 2020 returns, to deduct the expenses on their returns for the immediately subsequent tax year, instead of on an amended return or administrative adjustment request for the 2020 tax year.