Congress recently reached an agreement and passed the $900 billion relief bill in which the second stimulus package relief checks have been halved from the original stimulus package. Individuals will receive $600 per person, originally $1,200 per person in the first package, plus $600 per dependent under the age of 17, rising from $500 per dependent in the original stimulus package. Just like the first stimulus package, this package is also subject to Adjusted Gross Income (AGI) limits as well. What this means is that payment amounts will be reduced by $5 for every $100 an individual makes above the AGI phaseout limits
Many corporate transferees or assignees will lose some, if not all, of their stimulus checks due to benefits and reimbursements received from a 2019 move or assignment. Single employees earning approximately $75k to $87k and married employees earning between $150k to $174k are the most likely group to be adversely affected. Ineo offers a stimulus tax analyzer to determine if any of your employees may have been negatively affected by a 2019 move or assignment, thus losing all or part of a potential stimulus payment. Please contact David Oltman, SCRP at Doltman@ineomobility.com to receive a one-page worksheet.
Adjusted Gross Income (AGI) – 2019 IRS Form 1040-line 8b – AGI Phaseout Limits
Individuals filing as Single will receive a $600 stimulus check if their AGI is $75,000 or lower. For every $100 their AGI exceeds $75,000 they will lose $5 of their stimulus check up until an AGI of $87,000 at which point they will be phased out of receiving the stimulus check.
Married Filing Jointly
Individuals filing as Married Filing Jointly will receive a $1,200 stimulus check if their AGI is $150,000 or lower. For every $100 their AGI exceeds $150,000 they will lose $5 of their stimulus check up until an AGI of $174,000 at which point they will be phased out of receiving the stimulus check.
Business Meal Deduction
More good news for companies, they will now be able to write off 100% of business meal expenses through 2022. The previous deduction was limited to 50%.
Update as of 12/27/2020: The President has signed the stimulus bill passed by Congress, allowing these benefits to be enacted.
For additional information on the relief package text released by Congress, please click here.