2021 Annual Tax Season Update Study Guide
The study guide is provided to guide you through the course material in a step by step format.
Course material is a PDF document.
Chapter 1 – New Tax Law/Recent Updates
Assignment: Chapter 1 <<>> Review Questions Group #1: # 1-6
When you have completed the Chapter 1 text, you should be able to:
- Identify the inflation adjustments to various federal limits, including the –
- Standard mileage rates,
- Education savings bond program,
- Qualified long term care insurance premiums and benefits,
- Social security earnings limit,
- Retirement savings contribution credit,
- Health FSA contributions,
- Healthcare premium tax credit,
- Small business healthcare premium tax credit,
- Large employer shared responsibility,
- Archer medical savings accounts (MSA), and
- Health savings accounts (HSA); and
- Apply the new standard mileage provisions.
Chapter 2 – New Tax Law & Extenders
Assignment: Chapter 2 <<>> Review Questions Group #2: #1-3
When you have completed the Chapter 2 text, you should be able to:
- Determine the maximum age for traditional IRA contributions;
- Recognize the tax treatment of qualified birth or adoption distributions;
- Describe the distribution requirements imposed on non-spouse inherited IRA beneficiaries;
- Identify the change in the taxation of children’s unearned income;
- Describe the changes in § 529 plan distribution rules as they apply to –
- Repayment of student loans, and
- The expansion of qualified expenses to include expenses associated with apprenticeship programs;
- Calculate The change in the AGI threshold for medical expense deductions; and
- Describe the current status of tax extenders applicable to –
- Tax credits for non-business energy property,
- Payment of tuition and fees,
- Payment of mortgage insurance premiums, and
- Cancellation of primary residence indebtedness.
Chapter 3 – Individual Income Components
Assignment: Chapter 3 <<>> Review Questions Group #3: #1-3
When you have completed the Chapter 3 text, you should be able to:
- Identify those items included in a taxpayer’s taxable earnings;
- Determine the tax treatment of foreign accounts and trusts;
- Recognize the limits applicable to elective deferrals;
- Calculate the tax penalty for failing to take a required minimum distribution;
- Explain the requirements for a qualified Roth account distribution; and
- Identify the tax treatment of alimony paid and received.
Chapter 4 – Proprietorship Income
Assignment: Chapter 4 <<>> Review Questions Group #4: #1-3
When you have completed the Chapter 4 text, you should be able to:
- Explain how Form 1040, Schedule C is used;
- Recognize the items included in self-employment income and expenses;
- Distinguish between a hobby and a business for tax purposes;
- Identify the recordkeeping requirements to substantiate Schedule C entries;
- Understand the tax treatment of retirement income;
- Describe how a home office deduction is figured using the actual expense and simplified methods;
- Identify the limits applicable to expensing section 179 property;
- Discuss the tax rules applicable to deducting food and beverage expenses; and
- Describe the luxury auto depreciation limits.
Chapter 5 – Individual Deductions & Credits
Assignment: Chapter 5 <<>> Review Questions Group #5: #1-4
When you have completed the Chapter 5 text, you should be able to:
- Identify taxpayers’ standard deductions based on filing status, age and blindness;
- Describe the principal Schedule A changes resulting from the TCJA, including –
- Federal income tax deduction limits applicable to state and local taxes,
- Limitations applicable to mortgage debt,
- Maximum deductible charitable cash contributions,
- Deductions for moving expenses, and
- Deductions for personal casualty and theft losses; and
- Recognize the eligibility requirements for, and limits applicable to, various tax credits, including the –
- Child tax credit,
- Child and dependent care tax credit,
- American opportunity tax credit,
- Lifetime learning credit, and
- Earned income credit.
Chapter 6– Credits & Filing/Paying Taxes
Assignment: Chapter 6 <<>> Review Questions Group #6: #1-2
When you have completed the Chapter 6 text, you should be able to:
- Explain the nature and tax treatment of virtual currency;
- Calculate the applicable AMTI exemption based on income and filing status;
- Describe the tax treatment of children’s taxable unearned income;
- Identify the changes in § 529 plans with respect to –
- apprenticeship program expenses,
- elementary and secondary school tuition, and
- payments of interest or principal on student loan debt; and
- Discuss the § 199A qualified business income pass-through deduction.
Chapter 7– General Income Tax Review 2
Assignment: Chapter 7 <<>> Review Questions Group #7: #1-2
When you have completed the Chapter 7 text, you should be able to:
- Explain the changes made in ABLE accounts;
- Identify the tax treatment of forgiven student loan indebtedness upon death or disability;
- Calculate the expected contribution required of taxpayers obtaining tax credits to assist in purchasing healthcare coverage;
- Describe the rules governing a taxpayer’s tax withholding and estimated tax payments;
- Recognize the options available to a taxpayer for paying any tax due or receiving a tax refund; and
- Identify the due dates of income tax returns.
Chapter 8– Preparer Practices, Procedures & Professional Responsibility
Assignment: Chapter 8 <<>> Review Questions Group #8: #1-3
When you have completed the Chapter 8 text, you should be able to:
- Identify the red flags indicating possible tax-related identity theft and suggested assistance to its victims;
- Understand the laws and regulations requiring privacy and security of taxpayer data and the best practices tax preparers may implement to help assure it;
- Describe the purpose of individual taxpayer identification numbers, their effect on tax credits and how to renew them;
- Recognize the penalties applicable to a tax return preparer under Title 26;
- Identify the due diligence requirements imposed on tax return preparers with respect to claiming head of household filing status, EITC, CTC and AOTC;
- Understand the e-file requirements; and
- Recognize the Annual Filing Season Program requirements.
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