This article will help you:
- Navigate the new forms and calculations on tax year 2021 and 2020 returns due to the CARES Act and other pandemic relief and stimulus legislation.
- Understand what applying the CARES Act provisions changes on your 2019 tax returns.
- Find clients' 2019 returns that you previously filed who may benefit from amending their return to apply the relief provisions.
New for tax year 2022:
- Form 8915-F is used for all retirement disaster distributions and repayments occurring in 2021 and later.
For tax year 2021 returns:
- Per treasury guidance (Notice 2021-25 ), beginning Jan. 1, 2021, through Dec. 31, 2022, businesses can claim 100% of their food or beverage expenses paid to restaurants.
- Corporations can deduct qualified relief contributions paid between Jan. 1, 2020 and Feb. 25, 2021, up to 100% of their income. Learn more here.
- Corporations can deduct certain donations for major disasters paid between Jan. 1, 2020 and Feb. 25, 2021, up to 100% of their income. Learn more here.
Applying key CARES Act provisions to your 2020 returns
The following are the top articles about tax law changes from the CARES Act and the CAA of 2021:
- For help deducting $300 of cash contributions when taking the standard deduction, see Entering charitable contributions for the 1040.
- How to enter stimulus payments and figure the Recovery Rebate Credit in ProSeries will help you report your clients' economic impact payments and claim the Recovery Rebate Credit.
- Generating Form 8915 in ProSeries will show you how to enter a 2020 Coronavirus-Related Retirement Distribution and complete the 8915-F for ProSeries.
- For clients who received relief through the Paycheck Protection Program, see How to enter PPP loans and EIDL grants in ProSeries.
- Generating Form 7202 in ProSeries will show you how to complete Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals for tax year 2020 and 2021.
- Where do I enter the Employee Retention Credit in ProSeries? will help you make adjustments to the tax return if the Employee Retention Credit was taken on the 941 or 944.
- Common questions on Schedule SE Self-Employment tax in ProSeries will help you elect to defer self-employment tax payments.
- For businesses who normally deduct the expense of meals, meals provided by a restaurant are 100% deductible through Jan. 1, 2021 to Dec. 31, 2022. All other meals are still limited to 50%.