2020 Annual Tax Season Update - Mirrors the IRS-AFTR (Course Id 1517)

Taxes - Taxes for Course Id 1517

Each year, income tax return preparation must take into account inflation-related changes to various limits and new tax laws. This income tax CPE will look at those changes and new laws. The 2020 Annual Tax Season Update course is designed to provide valuable information to persons preparing individual 1040 income tax returns reflecting clients’ 2019 income.  The course a) examines the Tax Cuts and Jobs Act of 2017 and changes in various limits that reflect inflation, b) provides a general tax review, and c) discusses important rules governing tax return preparer ethics, practices and procedures. 

NASBA QAS - NASBA Registry - IRS Enrolled Agents - Registered Tax Return Preparers - 1517

Course Learning Objectives

• Identify the principal individual income tax changes brought about by the Tax Cuts and Jobs Act of 2017;
• Apply the inflation-adjusted and other limits to the proper preparation of taxpayers’ income tax returns;
• Recognize the federal income tax filing statuses and the criteria for their use;
• Identify the types of income that must be recognized;
• Apply the tax rules to the various credits and adjustments to income that are available to taxpayers;
• Recognize the penalties that may be imposed on a preparer for failing to meet ethical and practice standards in preparing tax returns; and
• Identify the duties and restrictions imposed on tax preparers under Circular 230.

Chapter 1
New Tax Law/Recent Updates

• Describe the inflation-related adjustments to standard mileage rates;
• Apply the rules and limits applicable to the education savings bond program;
• Recognize the limits concerning deductibility of premiums for and includability of benefits under qualified long term care insurance policies;
• Apply the Social Security earned income limits to a Social Security beneficiary’s earned income;
• Describe the Retirement Savings Contribution Credit; and
• Identify the small business tax credit and large employer shared responsibility requirement under the Affordable Care Act.

Chapter 2
New Tax Law/Recent Updates (cont’d)

• List the changes made to applicable Archer MSA and Health Savings Account limits due to inflation adjustment;
• Describe the status of tax extenders;
• Apply the tax laws to alimony paid under divorce agreements entered into after 2018;
• Identify the AGI threshold applicable to the 2019 and later deduction of unreimbursed medical expenses;
• Describe the status of the Affordable Care Act individual mandate penalty; and
• Calculate the simplified qualified business income (QBI) deduction using IRS Form 8995.

Chapter 3
Earned & Unearned Income

• Identify those items included in a taxpayer’s taxable earnings;
• Determine the tax treatment of foreign accounts and trusts; and
• Understand the tax treatment of retirement income; and
• Describe the tax treatment given to nonqualified annuity distributions.

Chapter 4
Schedules C/D & Form 8949

• Contrast the characteristics of a business and a hobby;
• Calculate a deduction for business use of a home;
• Identify the recordkeeping requirements applicable to income and expenses from self-employment;
• Describe the tax treatment of entertainment expenses incurred by a business;
• List the section 179 expense limits;
• Recognize the depreciation requirements concerning –
  o bonus depreciation,
  o luxury auto depreciation limits, and
  o listed property updates; and
• Describe the tax treatment given capital gains and losses.

Chapter 5
TCJA Schedule A Changes

• Identify the maximum state and local tax deductions;
• Describe the tax treatment of mortgage and home equity loan interest;
• Recognize the changes to charitable contribution deductions;
• Understand the changes to casualty and theft loss deductions; and
• Describe the tax treatment of moving expense reimbursements.

Chapter 6
Credits & Filing/Paying Taxes

• Identify the eligibility requirements for claiming –
  o child tax credit,
  o credit for other dependents,
  o child and dependent care tax credit,
  o education tax credit, and
  o earned income tax credit;
• Describe the requirements related to tax withholding and estimated tax payments;
• List the available tax balance due and refund options; and
• Recognize the tax return due dates and methods for filing for extensions.

Chapter 7
Overview Topics

• Describe the Alternative Minimum Tax exemption and phaseout amounts;
• List the limit changes made to –
  o the Kiddie tax,
  o § 529 Qualified Savings Plans,
  o ABLE accounts,
  o student loan indebtedness,
  o net operating losses (NOLs),
  o employee fringe benefits, and
  o depreciation of rental property; and
• Recognize the Affordable Care Act penalties and tax credits.

Chapter 8
Practices, Procedures & Professional Responsibility

• 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; and
• Understand the e-file requirements.

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