Course Description

Each year, various limits affecting income tax preparation and planning change. Some changes commonly occur each year as a result of inflation indexing, while others occur because of new legislation or the sunsetting of existing law. This course will examine the tax changes that took effect as a result of passage of the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act), the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and the inflation-changed limits effective for 2021 that are more significant from the perspective of an income tax preparer. Some context will be supplied, as appropriate, to assist readers in understanding the changes. 

Learning Objectives

Upon completion of this course, you should be able to:

• Recognize the 2021 changes in various amounts including the –
  • Standard mileage rates,
  • Standard deduction,
  • AMT exemption amount,
  • Limits related to income from U.S. Savings Bonds for taxpayers paying higher education expenses, and
  • Deductions for qualified long-term care insurance premiums;
• Identify the 2021 tax credit changes affecting the –
  • Saver’s credit,
  • Earned income credit, and
  • Adoption credit;
• Recognize the 2021 changes affecting –
  • Health Savings Account (HSA) and Archer Medical Savings Accounts (MSA) requirements and contribution limits,
  • Roth IRA eligibility, and
  • Traditional IRA contribution deductibility for active participants in employer-sponsored qualified plans;
• Explore the changes effective for 2021 with respect to the –
  • Small employer premium tax credit, and
  • Applicable large employer mandate;
• Discover the principal CARES Act provisions, including those related to the –
  • Paycheck Protection Program,
  • Pandemic Unemployment Assistance program,
  • Net operating loss (NOL) carryback rules,
  • Health savings account (HSA) rules concerning first-dollar payment for telehealth and COVID-19 testing and treatment,
  • Foreign income exclusion,
  • Section 1031 exchange timing,
  • Correction of the deductible period applicable to qualified improvement property,
  • Modification of limitation on losses for non-corporate taxpayers,
  • Limitation on business interest expense deductions,
  • Employer payments of student loans, and
  • Expansion of economic injury disaster loans (EIDLs); and
• Apply the various CARES Act provisions affecting –
  • Recovery rebate rules,
  • Expanded tax-favored use of retirement funds,
  • Charitable contribution rules, and
  • Qualified improvement property depreciation.

Learning Objectives

• Refer to the course description for the learning objectives.

Prerequisites

• None