2021 Federal Income Tax Changes

Overview

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:

  • identify the 2021 changes in various amounts including mileage rates, the standard deduction, the AMT exemption amount, etc.
  • identify the 2021 tax credit changes affecting the Saver's credit, the Earned income credit, and the Adoption credit
  • recognize the 2021 changes affecting various health and medical savings accounts, Roth IRA eligibility, and traditional IRA contributions
  • identify the changes effective for 2021 with respect to the small employer premium tax credit and applicable large employer mandate
  • identify the principal CARES Act provisions, including those related to the Paycheck Protection Program, Pandemic Unemployment Assistance program, Net operating loss (NOL) carryback rules, Limitation on business interest expense deductions, Employer payments of student loans, Expansion of economic injury disaster loans (EIDLs), etc.
  • apply the various CARES Act provisions affecting the Recovery rebate rules, Expanded tax-favored use of retirement funds, Charitable contribution rules, and Qualified improvement property depreciation

Tax Year: 2021


Designed For

CPAs, EAs, and tax professionals at any level of their career

Advanced Preparation

None

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