Coronavirus Relief Bill Expands Tax Deductions For Healthcare Workers & Teachers

alexic

Economic relief legislation passed in response to the pandemic have expanded the range of tac deductions available.

The expansion in tax deductions comes after a legislative trend curtailing the ability to claim tax deductions, according to Forbes. In 2018, only 10% of taxpaying households claimed itemized deductions.

The Coronavirus Aid, Relief and Economic Security (CARES) Act has implemented a $300 deduction for those who have made charitable donations in 2020. Additionally, the HEROES Act has implemented tax deductions that seek to costs for teachers and frontline healthcare workers. More specifically, up to $500 can be claimed as a deduction for money spent on school supplies and healthcare workers can claim the same amount for money spent on uniforms and supplies.

The cost of these deductions are expected to decrease tax revenue by $5 billion over the course of 10 years. The cost is small, especially considering that healthcare workers are spending their own money to protect themselves and serve others suffering from the coronavirus. These supplies should already be provided to healthcare workers.

Once deductions are enacted into law they face difficulty being overturned. As a result, these tax deduction policies will likely stay after the pandemic.

Read full story here.

Comments

Economics, Finance and Investing

FEATURED
COMMUNITY