Thread by @RavenousTiger

As far as I can tell this is the link to the bill that the house passed this morning congress.gov/117/bills/hr13…

Tax Provisions seem unlikely to change so I guess I'm going to read it today. Cat gifs!

Remarkably it's only like 600 pages so we are getting off easy this time #taxtwitter

First 45 pages are pretty random, then the minimum wage phase up to $15 is on page 46. Sounds like that'll be removed in the Senate so I'll skip all that.

Some child care grants mixed into the HHS section I suspect we'll get to more tax items about child care eventually.

Page 97 COBRA benefit continuation with an associated credit.

Page 126 begins the actual public health section, I doubt there is much here I'll even understand

Title 6 starting on page 310 I'm once again paying attention. Did someone say PPP loan?

Changing who qualifies for PPP to include more nonprofits. Then a specific carve out for the 51913 NAICS code businesses....

No double dipping with COBRA credit and PPP.

Targeted EIDL Advance p321. This is a pretty narrow targeted deal, suffice it to say very small and very hard hit businesses and I'm gonna leave it at that for now.

Oh snap here comes the restaurants! Starting on page 324 we've got a special program just for restaurants!

Restaurant grant covered period 2-15-20 through 12-31-21. Restaurants, food trucks, bars, brewpubs, taprooms, caterer, tavern, food stand pretty broadly where the primary purpose is being served food or drink. That kind of biz with "pandemic related revenue loss"

Grants to be made in a similar fashion as PPP such that the uncertainty of current economic conditions makes necessary the grant request to support the ongoing operations of the eligible entity. Nearly word for word the PPP certification.

Max is $10M in total, limited to $5M per physical location. The grant amount would be equal to the revenue loss (subtracting PPP1 and PPP2). Funds would need to be used for payroll, mortgage, rent, utilities, food and bev costs during the covered period, which runs to12-31-21

So it's like a restaurant/bar/taproom only PPP program that replaces all their revenue lost in 2020, gives them money to spend on payroll + food costs until the end of the year, but it would be reduced by PPP1 and PPP2 amounts they got. Very generous provisions here.

Title 9 on page 401 we have unemployment assistance. So the federal assistance extended to August 29th, an additional 5.5 months or so. It's a $400 increased benefit for March 14th through August 29th. Remember people that's taxable unemployment you receive.

Finally, stimulus checks on page 455. It's a 2021 credit and it's $1,400 for each filer+ all dependents. Phaseout seems to be $75-$100k for single, and $150k to $200k for married. So my reading is that at $201k you get nothing. That's a different method than the first two

First two stimulus phased out based on how much your credit was, so single with 3 kids topped out at a different number than single with 1 kid. This one seems regardless of how many kids at $100k the single person is capped at $0. Wonder if I'm reading that right.

Of course this 2021 credit shall come in advance. Like the first two you reconcile the advance with the actual 2021 calculation on your 2021 return and you could get more with the 2021 filing. So page 461 I think it's saying the advance will be based on your 2019 return.

"for such individuals first taxable year beginning in 2019 shall be treated as having made a payment"... sounds like based on 2019 return if they filed one. Ugh, page 465 makes it more complicated throwing in the 2020 returns and a second payment of the third stimulus. Complex.

If a 2020 return is filed prior to the IRS determining they are sending out these advance payments it will be based on the 2020 return. So motivation to file 2020 if they are lower inc than 2019. Similar to the first stimulus dance where you file some quick and delay others.

But wait there is more! Aditional payment of the third stimulus check. Seems like in Sept the IRS will send another advance of the third stimulus, to catch up to those folks who I guess have high 2019 income but this summer file a 2020 return with lower income so they qualify.

Oof, that whole stimulus bit is hard to follow, might need some fact checkers on that part. Why they gotta make it so complicated? We got 2 stimulus last year, we'll have 2 cracks at the third stimulus this year, and different phaseout rules for last year vs this year?

P476 Child Tax Credit, surely this will be simpler. Changes for 2021 CTC. 17 year olds count, simple enough. $3k per kid, but $3,600 for kids under 6. Why they gotta make this so hard? Phaseout for the CTC is now split between the original CTC and the expanded CTC.

So two different phaseout ranges for the two parts of the CTC calculation. But wait there is more! Advance payment of CTC which is a brand new concept, always love the brand new concepts dropping in the middle of tax season, gotta love that.

The IRS will establish some kind of program so people can collect 1/12 of the CTC each month. Requirement to create an online portal so taxpayers can elect not to receive advance. Holy cow there are a lot of rules about this, it's gonna take the IRS forever to figure it out.

There was like 25 pages about the CTC, goodness that's complicated for something aimed at low income families. So many of those go to VITA clinics like @PrepareProsper and with wildly reduced access to VITA sites this year I think those CTC will very often just end up in 2021.

EITC on p499 we've got more new rules for 2021 only. Hold on to your hats, a lot of changes here as well. For no kids the minimum age lowered, plus no maximum age so your working over 65 crowd with low income can get some EITC for 2021 only. Doubling the credit calculation.

A few sensible changes to EITC regarding returns where some people have SSN and some have ITINs, seems long overdue to fix that and those changes seem to apply going forward not just to 2021. Also greatly increased disqualifying investment income threshold to $10k going forward.

We've got another lookback for EITC. For 2021 year you can use 2019 earned income if you want to. This seems similar to the 2020 rule where you can elect to use 2019 income for EITC or CTC. Didn't see this 2021 lookback for CTC yet, perhaps I missed it?

Dependent Care Assistance, remember the third tweet I knew this would come up again. The 2021 DCTC made refundable and $ changed from $3k / $6k max up to $8k / $16k maximum. Holy cow what a change for taxpayers with big daycare bills. Also credit on 50% of costs instead of 35%.

Income phaseout greatly increased, really a massive change to the 2021 credits people will get for daycare expenses. Phaseout at $400k AGI. P522 the daycare flex at work goes from $5k to $10k for 2021.

New topic, the sick leave credit on p523. Extended out to Sept 30, 2021. Max credit now $12k instead of $10k. Expanded to include time off getting a vaccination or recovering from that vaccination. Reset of the # of days taken into account after Q1 so you can get 10 more days.

Not sure I caught all the sick leave credit changes, there are probably greater sick leave credit minds out there, needless to say a bunch of tweaks there. ERTC now that's in my wheelhouse, it's p537 and it's extended for Q3 and Q4 of 2021! LFG!

Premium Tax Credit p538. Changes for 2021 and 2022 and there is an actual table showing how it works, wow I love the table, they should really use more tables like that when writing tax law rather than just jamming it into paragraph form. Break for unemployed in 2021 with PTC.

Targeted EIDL Advances are tax free, no surprise there. p543 is those restaurant grants and boom it's tax free, no deduction denied, tax exempt income, treated like PPP. I think I might be calling it PPP3 from now on but open to naming suggestions for that @MNRestaurantCPA

Then the bill ends with like 30 pages about struggling pensions that has nothing to do with taxes. It's odd how they group things together in these bills, but I think that's all of it. Perhaps a missed something important do let me know. Perhaps I wasn't clear, let me know.

Ultimately we do need the Senate to pass it but this sure does seem like it'll be the key items that end up in a final bill that's going to pass soon. Thus ends the tweeting of this tax bill with cat gifs. Thanks!

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