IRS provides FAQs provide guidance for individuals, SMEs under “American Rescue Plan” (COVID-19)

FAQs provide guidance for individuals and small and medium-size employers

FAQs provide guidance for individuals and small and medium-size employers

The IRS today posted two new sets of “frequently asked questions” (FAQs) with information for individual taxpayers and small and medium-size employers (SMEs) that claim credits under the “American Rescue Plan Act of 2021” (enacted March 11, 2021).

As noted in an IRS release—IR-2021-128—both the child and dependent care credit as well as the paid sick and family leave credit were enhanced under the March 2021 legislation in an effort to provide relief in response to the coronavirus (COVID-19) pandemic.

The two sets of FAQs provide information on eligibility, on computing the credit amounts, and how to claim the tax benefits. Read the FAQs for individuals and FAQs for SMEs providing guidance on claiming credits. 


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