What's new for 2021
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), signed into law in March 2020, contained several tax-related provisions, including some temporary changes relevant to individuals.
Among the key temporary changes in the CARES Act affecting individuals are:
A retroactive suspension of the excess business loss limitation for tax years beginning before 2021 (creating the potential for some business owners to access a refund of cash or to pay a reduced tax liability).
A 5-year carryback period for NOLs arising in tax years 2018, 2019, and 2020.
A temporary suspension of the TCJA-imposed 80% of taxable income limitation on the use of certain NOLs.
A potential opportunity for individuals who itemize to deduct up to 100% of their adjusted gross income for certain charitable cash contributions made in 2020.