Web CPE

Program outline: 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: After completing this course you will be able to:

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

Program level: Overview

Prerequisites: None

Advance preparation: None

Type of delivery method: Self Study

Recommended CPE credits: 6

Final examination expiration date: The program participant will have one year from the date of purchase to complete the course and final examination.

Web CPE is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org