Federal Income Tax Changes Summary - 2021

Exam Questions: 15
Course Level: Basic
Pages: 134 | Content: 122, Supplemental: 12
NASBA Area of Study: Taxes
Not Acceptable for: N/A
Version: 8035A

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. PLEASE NOTE: Course material is similar to #8030: 2022 Tax Filing Season Update; therefore, we recommend that you should not take both courses in the same CPE reporting period. All course material provided. No prerequisites. Course level: Basic.

EA Program Approval Number: ZX34G-T-00452-21-S

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Course Information

Table of Contents
  • Changes in Various Limits
  • Tax Credit Changes
  • PPACA-Related Tax Changes
  • Changes in Archer MSAs, HSAs, and IRAs
  • Pandemic-Related Economic Stimulus
  • To recognize the 2021 changes in various amounts, including the standard deduction, limits related to income from U.S. Savings Bonds for taxpayers paying higher education expenses, and deductions for qualified long-term care insurance premium
  • To identify the 2021 tax credit changes affecting the saver's credit, child tax credit, child and dependent care tax credit, and adoption credit
  • To recognize the changes effective for 2021 with respect to the small business employer premium tax credit and applicable large employer mandate
  • To recognize the 2021 changes affecting Health Savings Account (HSA) and Archer Medical Savings Accounts (MSA) requirements and contribution limits, and Roth IRA eligibility
  • To recognize the principal CARES Act provisions, including those related to the Paycheck Protection Program
  • To identify various provisions of the American Rescue Plan Act

PLEASE NOTE: CPE credit measurement is based on NASBA Registry and QAS guidelines of one credit for every 50 minutes. Credit calculation may vary in different states — check with your State Board of Accountancy. Unless otherwise noted in the specific course description, no advanced preparation is required in order to register or complete any PES CPE course. Use of materials or services provided by Professional Education Services, LP ("PES") are governed by the Terms and Conditions stated on PES' website www.mypescpe.com. PES provides these courses with the understanding that it is not providing any accounting, legal, or other professional advice and assumes no liability whatsoever in connection with its use. PES has used diligent efforts to provide quality information and material to its customers, but does not warrant or guarantee the accuracy, timeliness, completeness, or currency of the information contained herein. Ultimately, the responsibility to comply with applicable legal requirements falls solely upon the individual licensee, not PES. PES encourages you to contact your state Board for the latest information and to confirm or clarify any questions or concerns you have regarding your duties or obligations as a licensed professional.