The prospect of more profound tax law changes under the Biden administration received a major boost on January 5, 2021 with Democrats winning both Georgia runoff Senate races. The Senate is now expected to be split 50/50 between Democrats and Republicans, with Vice President Elect Kamala Harris expected to side with Democrats to break tie votes. With Democrats also having a majority in the House of Representatives and a Democratic President, the chance of change has increased.

In December 27, 2020, President Trump signed the latest COVID relief package into law. Among the many provisions of the law, including one time (again) income based stimulus payments and expanded unemployment insurance benefits, the law contains several significant provisions affecting businesses.

On November 18, 2020 the IRS announced that taxpayers who received a Paycheck Protection Program (PPP) loan may not deduct the expenses paid with PPP funds if the taxpayer receives forgiveness or expects to receive forgiveness in 2020 or 2021.

Prior to the Tax Cuts and Jobs Act of 2017 (TCJA), taxpayers could deduct real estate taxes and state and local income taxes as itemized deductions on their personal income tax returns (subject to AMT and other limitations). The TCJA capped these State And Local Tax (SALT) deductions at $10,000.

New York State has updated the income tax filing requirements and residency FAQ confirming employees of New York State based companies who went remote during the pandemic will still be subject to New York State income tax on their earnings.

Recreational and medical marijuana legalization is on the ballot in several states this November. With legalization, states have adjusted their tax codes to promote the marijuana industry. The Federal government has not. Yet.