Economic Stimulus Legislation: Federal Response to the Coronavirus Pandemic - v11 (Course Id 1813)

Taxes - Taxes for Course Id 1813

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), legislation designed to provide economic relief for those impacted by COVID19, became law.  This course provides a general review of the principal provisions of the CARES Act and of other federal tax-related stimulus legislation passed during 2020. In addition, the current course includes a discussion of the American Rescue Tax Plan Act (ARPA) that became law on March 11, 2021.  

The course begins with an examination of three important provisions of the CARES Act: recovery rebates, the Paycheck Protection Program (PPP) and federal Pandemic Unemployment Assistance. It considers the CARES Act recovery rebates specifically with respect to filing status, the associated amount of the rebate, and the effect of a taxpayer’s adjusted gross income on the tax treatment of the rebate and the taxpayer’s eligibility for it.  The PPP’s provisions for SBA forgivable loans and taxability of loan proceeds is discussed as are the federal Pandemic Unemployment Assistance (PUA) provisions of the CARES Act, including its enhancement and augmentation of normal unemployment benefits, and the ways in which PUA benefits differ from other types of unemployment benefits. It also addresses several additional issues, including the changes brought about by the Act with respect to health savings accounts (HSAs), qualified medical expenses, high deductible health plans (HDHPs), foreign earned income, tax-free exchanges of investment property, correction of the Tax Cuts and Jobs Act provision addressing the depreciable period applicable to qualified improvement property, changes to the deduction of losses by non-corporate taxpayers, modifications of business interest limitations, employer student loan payments and SBA loans referred to as economic injury disaster loans (EIDLs). 

NASBA QAS - Text - Technical - NASBA Registry - IRS Enrolled Agents - 1813

Course Learning Objectives

• Apply the recovery rebate rules;
• Describe the provisions of the Paycheck Protection Program;
• Recognize the rules related to unemployment benefits under the Pandemic Unemployment Assistance program;
• Apply the provisions regarding expanded tax-favored use of retirement funds;
• Identify the changes to net operating loss (NOL) carryback rules;
• Apply the changes in charitable contribution rules;
• Describe the changes in health savings account (HSA) rules related to first-dollar payment for telehealth and COVID-19 testing and treatment;
• Apply the rule changes to qualified improvement property depreciation; and
• Recognize the rules related to miscellaneous provisions, including –
  o Changes to the foreign income exclusion,
  o Section 1031 exchange timing,
  o Correction of the deductible period applicable to qualified improvement property,
  o Modification of limitation on losses for non-corporate taxpayers,
  o Changes to the limitation on business interest expense deductions,
  o Exclusion of certain employer payments of student loans, and
  o Expansion of economic injury disaster loans (EIDLs);
• Identify the principal individual income tax provisions of the American Rescue Plan Act (ARPA).

Chapter 1
Rebates, Payroll, and Unemployment Assistance

• Recognize the nature and amount of recovery rebate authorized under the CARES Act;
• Apply the recovery rebate eligibility limitations;
• Calculate the amount of rebate based on a taxpayer’s adjusted gross income and filing status;
• Describe the rules applicable to the Paycheck Protection Program, including those related to –
  o Eligibility,
  o Maximum loan amounts, and
  o Forgiveness criteria;
• Identify the rules governing the Pandemic Unemployment Assistance program, including –
  o The additional unemployment benefits available,
  o The eligibility requirements,
  o The tax treatment of benefits, and
  o The credit for employee retention.

Chapter 2
Charitable Contributions, Retirement Funds, and NOLs

• Identify the changes in deductible charitable contribution rules;
• Describe changes made to qualified plan loans;
• Recognize the early distribution tax penalty changes for coronavirus-related distributions;
• Apply the rules governing the tax treatment of coronavirus-related withdrawals;
• Describe the tax treatment governing repayment of IRA and qualified plan withdrawals;
• Identify the changes to required minimum distributions (RMDs) applicable to 2020; and
• Recognize the net operating loss carryover rules.

Chapter 3
Miscellaneous CARES Act and TRA 2020 Provisions

• Describe the health savings account (HSA) exemptions for telehealth services,
• Discuss changes made to qualified medical expenses,
• Identify the changes made to high deductible health plans (HDHPs) with respect to first-dollar payment of COVID-19 related testing and treatment expenses;
• Recognize the extension available with respect to Section 911 exclusion of foreign earned income;
• Describe the changes made to the tax treatment of tuition and related expenses;
• Identify the Section 1031 time-sensitive action deadlines; and
• Describe the CARES Act provisions affecting businesses, including the –
  o Correction regarding the deductible period applicable to qualified improvement property,
  o Modification of limitation on losses for non-corporate taxpayers,
  o Changes to the limitation on business interest expense deductions,
  o Exclusion of certain employer payments of student loans, and
  o Expansion of economic injury disaster loans (EIDLs).

Chapter 4
Additional Economic Stimulus Legislation

• Describe primary objective of the Coronavirus Preparedness and Response Supplemental Appropriations Act;
• Identify the principal intent of the Families First Coronavirus Response Act (FFCRA);
• Recognize the impact of the Paycheck Protection Program and Health Care Enhancement Act; and
• Describe the principal individual income tax-related provisions of the American Rescue Plan Act of 2021.

Exemption for Telehealth Services

Qualified Medical Expenses

High Deductible Health Plans and COVID-19-Related Expenses

Additional Health Care Related Provisions

Unreimbursed Medical Expense Threshold Lowered

Section 911 Foreign Earned Income

Section 1031 Timing Relief

Miscellaneous Personal Tax Changes

Miscellaneous Business Provisions

Temporary Increase in Business Meal Deductibility

Technical Amendments Regarding Qualified Improvement Property

Limitation on Losses for Non-Corporate Taxpayers

Modifications of Limitation on Business Interest Expense

Special Partnership Rules

Exclusion of Certain Employer Payments of Student Loans

Economic Injury Disaster Loans (EIDL)

Emergency Grants

Chapter 3 Review Questions

Chapter 4 - Additional Economic Stimulus Legislation

Learning Objectives

Introduction

Coronavirus Preparedness and Response Supplemental Appropriations Act

Families First Coronavirus Response Act (FFCRA)

Paycheck Protection Program and Health Care Enhancement Act (Enhancement Act)

Extended Eviction Ban

Additional Stimulus Legislation

American Rescue Plan Act of 2021

Unemployment Benefits

Recovery Rebates

Limitation Based on Adjusted Gross Income

COBRA Premium Assistance

Child Tax Credit

Child Tax Credit Increase Subject to Separate Phase-Out

Reduction Limitation

Earned Income Tax Credit

Taxpayers with no Qualifying Children

Taxpayers with Qualifying Children who Fail to Meet Identification Requirements

Separated Spouses

Investment Income Test

Temporary Special Rule for Determining Earned Income

Child and Dependent Care Tax Credit

Premium Tax Credit Expansion

Student Loan Discharge

Noncorporate Excess Business Loss

Chapter 4 Review Questions

Appendix

Glossary