2025/2024 Easy Update and Inflation Adjustments for Tax (Plus Reminders on Select Provisions) - Mini Course (Course Id 2449)

This mini-course examines key individual, business, retirement, and estate tax provisions recently enacted or indexed for inflation in an overview format that is easy to reference. The emphasis is on quick access to major tax changes having special meaning to the tax practitioner and return preparer. The course is a great resource and a way for professionals and staff alike to easily get the “big chunks” and bring their professional knowledge up to speed. 

Please Note: This course covers tax issues applicable to 2024 income reported in the 2025 tax season.

NASBA QAS - Text - NASBA Registry - IRS Enrolled Agents - 2449

As a result of studying the assigned materials, you should be able to meet the objectives listed below.

At the start of the materials, participants should identify the following topics for study:
* Tax brackets
* Tax credits
* Deductions
* Education credits
* Business deductions & credits
* Retirement plan contribution and phaseout limits

After reading the materials, participants will be able to:
1. Recognize the various issues affected by inflation and recent tax law developments especially as they relate to individual tax brackets, exemptions & deductions, the AMT, the child tax credit, alimony, HSAs, education plans, and energy credits.
2. Determine the key business tax issues affected by inflation adjustments and recent legislative changes, including corporate tax rates, entertainment expenses, tax credits & deductions, bonus depreciation, expensing, standard mileage rates, employment taxation, low-income housing tax credit, §1031 exchange property, partnership taxation, insurance deductions, excessive compensation, and investment income.
3. Specify differences between various retirement plans, including inflation-adjusted contribution limits and phaseout limits, and determine estate taxes by identifying trust income tax rates and determining applicable exclusion amounts.

Chapter 1 - 2025/2024 Easy Update and Inflation Adjustment

Individual

Income Tax Rates - §1

Marriage Penalty - Mostly Gone

Capital Gain & Qualified Dividend Rate

Digital Asset Reporting - §6050I

Standard Deduction - §63

Dependent Limit - §63(c)(5)

Personal & Dependency Exemptions (Suspended) - §151

Deemed Personal Exemption for Related Incorporating Provisions

$500 (Family Tax) Credit for Certain Dependents - §24(h)(4)(A)

Final Regulations of Qualifying Relatives - TD 9913

Limitation on Itemized Deductions (Suspended) - §68

Itemized Deductions Subject to 2% Floor (Suspended) - §62

Children's Income - §63, §73 & §6012

Earned Income

Unearned Income

"Kiddie" Tax - §1(g)

Application, Threshold & Impact

Election to Report on Parents’ Return - §1(g)(7)(A) [Form 8814]

AMT - §55

Exemption Amounts - §55(d)(1)

AMT Exemption Phaseout - §55(d) & §59(j)

AMT & Personal Credits

AMT Exemption for Children - §59(j)

Modified Inflation Adjustment Calculation Method

Wage Base for Social Security & Medicare Taxes

Earned Income Tax Credit - §32

Disqualified (Excessive Investment) Income - §32(i)

Means-Tested Programs

Child Tax Credit - §24

Earned Income

AGI Phaseout

Child & Dependent Care Expenses Tax Credit - §21

Alimony Payment Deduction Repealed - §62 & §215

Moving Cost Deduction & Reimbursement Suspended - §217

State and Local Taxes (SALT) Limited - §164

$10,000 Exception

Charitable Contributions - §170

Cash Contributions - 50/60 Percent Limitation

College Athletic Event Seating Rights Repealed

Substantiation Exception for Donee Reported Contributions Repealed

Mortgage Interest Deduction Temporarily Limited - §163(h)

Securities Rollover Into SSBICs Repealed - §1044

Educator Expenses - §62(a)

Protective Items Safe Harbor - R.P. 2021-15

Higher Education Tuition Deduction Repealed - §222

Tax on Net Investment Income - §1411

Reduced Home Sale Exclusion For Nonqualified Use - §121

Computation

Nonqualified Use

Post-May 6, 1997 Depreciation

Surviving Spouse Home Sale Exclusion - §121

Residential Mortgage Debt Relief Extended - §108

Deductible Mortgage Insurance Premiums Expired - §163

Insubstantial Benefit Charitable Contribution Limitation - §513

Household (Domestic) Employees - §3121

Adoption Credit - §23 & §137

Education Savings Accounts - §530 & §529

American Opportunity Tax (former Hope) & Lifetime Learning Credits - §25A

American Opportunity Tax Credit - §25A(b)(1)

Phase Out - §25A(d)

Refundable Portion

Lifetime Learning Credit - §25A(a)(1)

Phase Out - §25A(d)(2)

Educational Savings Bonds - §135

Student Loan Interest Deduction - §221

Qualified Student Loan

Qualified Education Expenses

Phase Out

Discharge Of Student Loan Indebtedness Expanded - §108

Death or Disability

Other Loan Forgiveness

Foreign Earned Income Exclusion - §911

Rehabilitation Credit Modified - §47

Final Regulations of Rehabilitation Credit

Grandfathered Archer Medical Savings Accounts - §220

Medical Expense Deduction - §213

Personal Casualty & Theft Losses Suspended - §165(h)(5)

Wagering Losses Limited - §165(d)

Health Savings Accounts (HSAs) - §223

High Deductible Health Plan (HDHP)

Annual Limit On Contributions

Interaction with Obamacare

Long-Term Care Premiums - §213(d)(10)

Long-Term Care Payments - §7702B(d)(4)

ABLE Accounts - §529A

Eligible Individual

Qualified ABLE Program

Final Regulations (TD 9923)

Contributions

Investment Direction

Distributions

Rollovers

Affordable Care Act (“Obamacare”)

Mandates

Individual - Repealed

Health Plan Coverage Credit - §36B & Form 8941

Employers

Small Employers - Fewer Than 50 Employees

Large Employers - 50 or More Full-time Employees

Marketplaces & Protecting Affordable Coverage for Employees Act

Expatriation - §877A

Private Activity Bonds Volume Cap - §146(d)

Loan Limits on Agricultural Bonds - §147(c)

Failure to File Tax Return - §6651

Penalties Regarding Preparing Other’s Tax Returns - §6695

Attorney's Fees - §7430(c)(1)

Energy

Energy-Efficient Home Improvement Credit Modified - §25C

Qualified Energy Efficiency Improvements

Qualified Energy-Efficient Property

Inflation Reduction Act

IRA Modifications

Residential Clean Energy Credit - §25D

Inflation Reduction Act Restoration

Biomass Fuel

Clean Vehicle Credit - §30D

Credit Amount

Battery Components Requirement - §30D(b)(3) & §30D(e)(2)(A)

Critical Minerals Requirement - §30D(b)(2) & §30D(e)(1)(A)

Submission of Information to the IRS

Credit for Used Clean Vehicles - §25E

Transfer to Dealership – R.P. 2023-33

Advanced Nuclear Production Tax Credit - §45J

Energy Efficient Home Credit - §45L

Multifamily Dwellings

Renewable Energy Credits

Prevailing Wage & Apprenticeship Requirements

Prevailing Wage & Apprenticeship Guidance

Prevailing Wage – IRA Act §13101(f)(7)

Apprenticeship – IRA Act §13101(f)(8)

Additional Increases to “Base” & “Bonus” Credits – IRA Act §13103

Domestic Content

Energy Communities

Low-Income Communities - §48(e) & §48E

Energy Tax Credits As Payments - §6417

Alternative Fuel Refueling Property Credit - §30C

Qualified Refueling Property

Amount of the Credit

Qualified Refueling Property

Extension of Credits for Alternative Fuels - §40A et al

Sustainable Aviation Fuel (SAF) Credit - §40B

Sustainable Aviation Fuel

Qualified Mixture

Credit Value

Production Tax Credit (PTC) - §45

Credit Value

Prevailing Wage & Apprenticeship Requirements

Domestic Content

Energy Community

Carbon Capture & Sequestration Credit Enhancements - §45Q

Qualifying Threshold

Credit Value

New Zero-Emission Nuclear Power Production Tax Credit - §45U

Qualifying Facilities

Credit Value

Clean Hydrogen Production Tax Credit - §45V

Credit Value

Applicable Percentage

Prevailing Wage & Apprenticeship Requirements

Qualified Commercial Clean Vehicles - New §45W

Credit Value

Eligible Vehicles

Advanced Manufacturing Production Credit - §45X

Credit Value

Phaseout

Clean Electricity Production Credit - §45Y

Credit Value

Prevailing Wage & Apprenticeship Requirements

Domestic Content

Phaseout

Clean Fuel Production Credit - §45Z

Credit Value

Investment Tax Credit (ITC) - §48

Credit Value

Prevailing Wage & Apprenticeship Requirements

Domestic Content Requirement

Solar & Wind Facilities

Advanced Energy Project Credit - §48C(e)

Eligible Projects

Credit Value

Prevailing Wage & Apprenticeship Requirements

Advanced Manufacturing Investment Credit - §48D

Clean Electricity Investment Credit - §48E

Credit Value

Phase Out

Energy Community

Domestic Content

Coordination With Other Code Sections

Energy Efficient Commercial Building Deduction -  §179D

Definitions

Deduction Amount

Prevailing Wage & Apprenticeship Bonus

Retrofit Plan

Business

Business Income of Individuals - 20% Deduction - §199A

Limitations

Deduction Amount

Qualified Trade Or Business

Final Regulations & Guidance

Corporate Tax Rate - §11(b)

21% Rate

Corporate Alternative Minimum Tax - §55

Reinstatement of AMT for Certain Larger Corporations - §55(b)(2)

Adjusted Financial Statement Income

Application of Tax

Notice 2024-10 Guidance

Small Business Exceptions - §448

Excessive Employee Remuneration Deduction Limit - §162(m)

TCJA Changes

Qualified Equity Grants - §83(i)

TCJA Changes

Entertainment Activities & Facilities Deduction Repealed - §274

Facilities

Exceptions to Disallowance

Final Regulations on Meal & Entertainment Deductions - TD 9925

Transportation Fringes - §132(f) - Excludable but Not Deductible

Food, Beverage & Meal Expenses

Eating Facilities

Business Interest Limited - §163(j)

Final Regulations on Business Interest

Limitation on Non-corporate Losses - §461(l)

Disallowance Of Excess Business Losses

Excess Business Loss

IRS Guidance - IR-2018-254

Net Operating Loss Deduction - §172

IRS Guidance - IR-2018-254

Employer-Provided Child Care Credit - §45F

Family & Medical Leave Credit - §45S

Uniformed Services Differential Wage Credit  - §45P

Health Care Coverage

Small Employer Health Insurance Credit - §45R

Reporting - §6051(a)(14)

Small Employer HRA - §9831(d)(2)

Notice 2018-18

Bonus (or Additional First-year) Depreciation - §168(k)

Qualified Property - §168(k)(2)

Depreciation Limits on Business Vehicles - §168(k)(2)(F)

Nonqualified Property - §168(k)(2)

Final Regulations for 100% Bonus Depreciation - TD 9916

Vehicle Depreciation “Caps” - §280F(a)

Vehicle Bonus (or Additional First-year) Depreciation - §168(k)

$25,000 SUV Limit - §179(b)(5)(A)

Expensing - §179

Eligible Property

Business Use & Acquisition

General Business Credit - §38

Film, TV & Live Theatrical Productions Deduction - §181

Estimated Tax Payments - §6654

Standard Mileage Rates

Social Security, Medicare & FUTA (or Payroll) Taxes

FICA - §3101, §3111 & §3121

SECA - §1401

Wage Base

Final Regulations on Wage Withholding & W-4 (T.D. 9924)

Additional Hospital Insurance Tax On Certain High-Income Individuals

FUTA - §3301 & §3306

Employee Retention Credit Audits- §3111

Research Credit  - §41 [Form 6765]

Qualified Expenses

Base Credit Amount

Alternative Simplified Credit

Credit Toward Payroll Tax

Qualified Small Business

Amortization or Deduction of Research & Experimentation - §174

TCJA Changes

Low-Income Housing Tax Credit - §42

Rate Freeze

Military Allowances & Low-Income Housing - §42(h) & §142(d)

Cafeteria Plans - §125(i)

Employer-Provided Educational Assistance - §127

Parking & Transit Passes - §132(f)

Bicycle Fringe Benefit Exclusion Suspended - §132(f)

Cents-per-Mile Valuation Method - §61

Final Regs (TD 9893)

Employee Achievement Awards Exclusion Modified - §74

Moving Expense Reimbursement Exclusion Repealed - §132

Travel Per Diem Rates - §162 & §274

Work Opportunity Tax Credit (WOTC) - §51

Targeted Groups

Credit Amount

Special Long-Term Family Assistance Recipients Calculation

Special Veterans Calculation as a Result of “VOW”

Qualified Improvement Property - §168(e)(6)(A)

Recovery Period & Depreciation Method - §168(b)(3)(G)

Qualified Improvement Property - §168(e)(6)(A)

Final Distribution Regulations - §385

Recovery Period Of Certain Farm Property Shortened - §168

Like-kind Exchanges Limited to Real Property - §1031

Real Property Defined for Like-Kind Exchanges – TD 9935

Inherently Permanent Structures: Buildings and Machinery

Inherently Permanent Structures: Structural Components

Unsevered Natural Products are Real Property

Intangible Assets as Real Property

Incidental Personal Property and Qualified Intermediaries

Domestic Production Activities Deduction Repealed - §199

New Markets Tax Credit - §45D

Qualified Equity Investment

Qualified Low-Income Community Investments

Qualified CDE

Credit Amount

Motorsports Entertainment Complexes - §168(i)(15)

Imputed Interest Small Transaction Exception - §1274A

Denial of Deduction for Certain Fines - §162(f)

Final Regulations On Nondeductibility Of Fines And Penalties

Denial of Sexual Harassment Settlement Deductions - §162(q)

Technical Termination Of Partnerships - §708

Increased Holding on Partnership Profit Interests - §1061(a)

Limitation On Allowance Of Partner’s Share Of Loss - §704(d)

Built-In Loss Definition On Partnership Interest Transfer - §743

Foreign Person Sale of U.S. Partnership Interest - §864(c)

S to C Corporate Conversion Rules - §481(d)

S Corporation Built-In Gain Period - §1374

Beneficiaries Of An Electing Small Business Trust - §1361

Charitable Deduction for Electing Small Business Trust - §641

Small Life Insurance Company Deduction Repealed - §806

UBIT Separately Computed - §512

UBTI Increased by Taxable Fringe Benefits - §512

Repurchase of Corporate Stock - §4501

Inflation Reduction Act

Application Exceptions

Tax-Exempt Organization Executive Compensation Tax - §4960

Final Regs On Tax Exempt-Organization Executive Compensation

Backup Withholding Percentage Reduced to 24% - §3406

Private College And University Investment Income - §4968

Final Regulations on Collegiate Net Investment Income - TD 9917

Information Reporting & Penalties - §6721 et al

Corrections Resulting in Reduced Penalties

Small Businesses

Reasonable Cause

Electronic Filing Requirement

Beneficial Ownership Information (BOI) Reporting

Failure to File Partnership Return - §6698

Failure to File S Corporation Return - §6699

Delayed Implementation of Form 1099-K - §6050W

Retirement Plans

Defined Benefit Plans - §415(b)(1)(A)

Defined Contribution Plans - § 415(c)(1)(A)

Rollover Period For Plan Loan Offset Amounts Extended

Compensation Limit - §401, §404 & §408

IRA Contribution Limit - §219

Catch-up Contribution - §219(b)(5)(B)

IRA AGI Phaseout Limits - §219

Individual Taxpayer is an Active Plan Participant

Spouse is an Active Plan Participant

Qualified Charitable Distributions from IRAs - §408(d)(8)(A)

Roth Contribution Limit - §408A(c)(2) & §219

PLESAs - Designated Roth accounts

Roth AGI Phaseout Limits - §408A(c)(3)

Rollovers to Roth IRAs

In-Plan Rollovers to Roth Accounts

Roth IRA Conversions for Retirement Plans

Special Roth IRA Recharacterization Repealed - §408A

§401(k), §403(b) & §457 Elective Deferral & Catch-up Limits

Roth Treatment of Catch-up Contributions – Secure Act §603

“Rothification” Rules

SIMPLE Plans

Simplified Employee Pensions (SEPs)

Contribution Limit

Compensation Limit

Retirement Savings (Saver’s) Contributions Credit - §25B(b)

Nonspouse Rollovers - §402

10-Year Rule

Final Regs on Withholding on Periodic Retirement Payments

Estate, GST & Gift Taxes - §2001, §2601 & §2501

Estate Tax - §2001

Applicable Exemption (or Exclusion) Amount - §2010

Making Large Gifts Won't Harm Estates After 2025

Basis of Inherited Property - §1014

Portability - §2010(c))

State Death Tax Credit Replaced with Deduction - §2058

Final Regulations on Estate and Trust Deductions - TD9918

Real Property Valuation - §2032A

Interest on Estate Tax Installments - §6166 & §6601

Estate & Trust Income Tax Rates - §1(e)

Consistent Basis Reporting Between Estate & Heirs - §6035

GST Tax - §2601

Rates

Applicable Exemption Amount for GST - §2010

Gift Tax - §2501

Applicable Exemption Amount for Gift Tax - §2505

Annual Exclusion for Gifts - §2503

Noncitizen Spouse Exclusion - §2523(i)(1)

Notice of Large Gifts Received from Foreign Persons - §6039F

Glossary