Although the provisions are significant, I think you can see these provisions won't have a significant impact on most taxpayers' income tax returns, possibly with the exception of the expanded premium tax credit.
Tax tips and developments relating to individuals
The tax consequences of fraud on the victims are complex and usually aren’t good news.
The passthrough entity tax is a workaround for the $10,000 individual income tax limit on the deduction for state taxes adopted in the Tax Cuts and Jobs Act of 2017. On February 9, 2022, Governor Newsom signed SB 113, which fixes some of the issues with California's passthrough entity tax.
According to 2020 FTB Publication 1001 (Revised November, 2021), page 13, the federal reduction of wages doesn't apply on the California income tax return.
According to the Notice, whether wages of controlling owners of a business and their spouses qualify for the employee retention credit depends on whether they have certain relatives.
Many high income and high net worth taxpayers will be relieved to learn that Biden's major revenue proposals are NOT included in the agreement.
Most significantly for individuals who are small business owners and investors, the extension doesn't apply to the first estimated tax payment for 2021
The IRS has posted guidance about the procedure for reporting unemployment compensation for taxpayers who qualify for the new exclusion of up to $10,200 per taxpayer.
If a taxpayer (same threshold for a single or joint return) has adjusted gross income of less than $150,000, up to $10,200 of unemployment compensation received is excluded from federal taxable income.
The Small Business Administration has issued new rules enabling small business owners who file Schedule C to apply for a bigger Paycheck Protection Program (PPP) loan, but only if they haven't had a PPP loan approved before.