Economic Stimulus Legislation: Federal Response to the Coronavirus Pandemic - v13 (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, including the Tax Relief Act of 2020 signed into law on December 27, 2020.

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 rules related to the business deduction of food and beverages,
  o Changes to the CTC and EITC rules,
  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).

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 the 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;
• Describe the principal individual income tax-related provisions of the American Rescue Plan Act of 2021; and
• Identify the principal provisions of the Inflation Reduction Act.

Course Learning Objectives

Course Introduction

Chapter 1 - Rebates, Payroll, and Unemployment Assistance

Learning Objectives

Introduction

Recovery Rebates (Economic Impact Payments)

Rebate Eligibility

AGI Limitations

Additional Per-Child Credit

Additional Recovery Rebate (Economic Impact Payment) Issues

Paycheck Protection Program

Paycheck Protection Program Eligibility

Maximum Loan Amount

Small Business Association Covered Loan Forgiveness

Tax Treatment of Loan Forgiveness

Payroll Tax Deferral – Employer Share

Payroll Tax Deferral – Employee Share

Pandemic Unemployment Assistance

Unemployment Benefits

Benefit Eligibility

Tax Treatment of Benefits

Employee Retention Credit

Chapter 1 Review Questions

Chapter 2 - Charitable Contributions, Retirement Funds, and NOLs

Learning Objectives

Introduction

Charitable Contributions

Qualified Contributions

Partial Above-the-Line Deduction for Charitable Contributions

Retirement Plans

Employer-Sponsored Qualified Retirement Plans

SEP IRA

SIMPLE IRA

Traditional IRA

Roth IRA

Relaxation of Retirement Fund Tax Rules

Qualified Plan Loan Maximum Increased

Early Distributions

Taxation of IRA and Qualified Plan Withdrawals Over Three-Year Period

Rollover of IRA and Qualified Plan Withdrawals Within Three Years of Distribution

Coronavirus-Related Distribution

IRS Notice 2005-92

Qualified Disaster Distribution

Suspension of 2020 Required Minimum Distributions

Modifications for Net Operating Losses (NOLs)

Chapter 2 Review Questions

Chapter 3 - Miscellaneous CARES Act and TRA 2020 Provisions

Learning Objectives

Introduction

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

Inflation Reduction Act

Tax Credits for Energy-Efficient Home Improvements

Energy Tax Credit Limits

Effective Dates

Tax Credits for Purchase of Electric Vehicles

Clean Vehicle

Calculating Available EV Tax Credits

Transfer of Credit

Tax Treatment of Payments

Electric Charging Stations

Health Insurance Premium Tax Credit Expanded

Limitation on Losses for Non-Corporate Taxpayers

Chapter 4 Review Questions

Appendix

Glossary