Tax Cuts and Jobs Act - Individual Tax Preparation - For the 2026 Tax Year (Course Id 2777)

• Who is this course for?
  This course is designed for anyone needing Continuing Professional Education (CPE), including CPAs and IRS Enrolled Agents seeking 4.0 CPE and 4 IRS credits in taxes for the 2026 tax year.

• What is this course about or what problem does this course solve?
  This course examines the principal provisions of the Tax Cuts and Jobs Act (TCJA) and related updates under the One Big Beautiful Bill Act (OBBBA) that affect individual taxpayers, focusing on 2025 income reported in the 2026 tax season.

• How can the knowledge from this course be used?
  The knowledge gained can be used to apply current individual and capital gains tax rates, calculate AMT and the §199A pass-through deduction, identify updated deductions and credits, and properly prepare Form 1040, Schedule A, and Schedule C in light of TCJA and OBBBA changes.

• Why is this course important to a CPA, Accountant, or IRS Enrolled Agent?
  This course is important because it provides 4 IRS credits and equips tax professionals with the current rules and calculations needed to accurately prepare 2025 individual returns during the 2026 tax season under updated TCJA and OBBBA provisions.

• When is this course relevant or timely?
  This course is especially relevant for the 2026 tax season, as it addresses tax issues applicable to 2025 income and incorporates OBBBA changes impacting TCJA provisions in 2025 and 2026.

• How is a course like this consumed or used?
  This QAS self-study text course is completed online, requires no prerequisites or advance preparation, and requires participants to pass a 20-question final exam with a minimum score of 70% within one year of purchase to earn CPE or IRS credit.

The Tax Cuts and Jobs Act of 2017 (TCJA), signed into law during the closing days of 2017, significantly affects tax planning and the income tax liability for many taxpayers. This course will examine the principal changes affecting individual taxpayers made by the TCJA and the current limits applicable to them. 

It examines the provisions of the TCJA with increased potential to affect the taxation of individuals related to changes in:

• Individual and capital gains tax rates;
• Standard deduction and exclusions;
• Income and adjustments to income;
• Itemized deductions in Form 1040 Schedule A;
• Form 1040 Schedule C;
• Tax credits;
• Individual alternative minimum tax (AMT);
• Taxation of unearned income of minor children;
• Qualified tuition plans;
• ABLE accounts;
• Tax treatment of student loan indebtedness discharges;
• Net operating losses; and
• Affordable Care Act individual responsibility requirement.

In addition, it will consider the business-related TCJA provisions affecting individual taxpayers, including the pass-through deduction for qualified trades or businesses under IRC §199A, and the provisions of the One Big Beautiful Bill Act (OBBBA) that impact the TCJA provisions in 2025 and 2026. 

Please Note: This course covers tax issues applicable to 2025 income reported in the 2026 tax season.

NASBA QAS - Text - NASBA Registry - IRS Enrolled Agents - 2777

Course Learning Objectives

• Apply the provisions of OBBBA effective in 2025 and 2026 to affected TCJA provisions;
• Recognize and apply the individual income and capital gains tax rates applicable to the current year;
• Identify the current year deductions, exclusions, adjustments and tax credits;
• Calculate the alternative minimum tax (AMT) and Kiddie tax;
• List the changes affecting Section 529 plans, ABLE accounts, discharge of student loan indebtedness, accounting for net operating losses and the individual responsibility requirement under the Affordable Care Act; and
• Calculate the pass-through deduction available under IRC §199A.

Chapter 1
TCJA Provisions Affecting Tax Preparation

• Recognize the TCJA’s effect on the individual income and capital gains tax rates;
• List the changes in standard deductions, filing requirements and exemptions resulting from passage of the Tax Cuts and Jobs Act;
• Describe the TCJA’s impact on the adjustments to income for alimony and taxpayer moving expenses;
• Identify the changes affecting the itemized deductions on Schedule A; and
• Understand the provisions of the enhanced child tax credit.

Chapter 2
TCJA Provisions Affecting Individuals

• Describe the Kiddie Tax modifications and the broadening of §529 plan distributions;
• List the changes affecting the discharge of student loan indebtedness and net operating losses;
• Describe the TCJA’s effect on the ACA’s requirement to maintain health coverage and its changes to employee fringe benefits; and
• Identify the principal changes to the rules governing real property depreciation.

Chapter 3
Business-Related TCJA Provisions Affecting Individual Taxes

• Recognize the general pass-through deduction for a qualified trade or business
• Define the terms “qualified trade or business,” “qualified business income,” and “qualified property” for purposes of the pass-through deduction;
• Describe the W-2 wage limitation related to the pass-through deduction;
• List the changes with respect to Schedule C provisions, including those related to –
  o Entertainment expenses,
  o Section 179 expense limits,
  o 100% expensing,
  o Luxury auto limits,
  o Listed property updates, and
  o Net operating losses.

Course Learning Objectives

Introduction to the Course

Chapter 1 – TCJA Provisions Affecting Tax Preparation

Chapter Learning Objectives

Introduction

New Individual and Capital Gains Tax Rates

Standard Deduction Increased and Filing Requirements Changed

Standard Deduction for Dependents

Standard Deduction for Blind and Senior Taxpayers

Standard Deduction Eligibility

Federal Income Tax Return Filing Requirements

Personal Exemption Temporarily Reduced to Zero

Alimony

Moving Expense Deduction & Reimbursement

Moving Expenses in and Intelligence Community Military Relocations

Itemized Deductions Schedule A

Medical Expense AGI Threshold

State and Local Tax Deductions

Home Mortgage Interest Deduction

OBBBA Makes Mortgage Insurance Premiums Deductible for Itemizers

Exception for Binding Contracts

Indebtedness Refinancing

Charitable Contributions

60% AGI Limit for Cash Contributions

Deduction for Athletic Tickets

Exception to Contemporaneous Written Acknowledgement

Content and Timing of Contemporaneous Written Acknowledgement

Partial Above-the-Line Deduction for Charitable Contributions

OBBBA Authorizes Partial Charitable Deduction for Non-Itemizers

OBBBA Makes Cash Contribution Limit Permanent & Adds Deductible Floor

Casualty and Theft Loss Deduction

OBBBA Makes Provisions Permanent & Eliminates Need to Itemize

Miscellaneous Itemized Deductions Subject to 2% of AGI Threshold

OBBBA Permanently Eliminates Miscellaneous Deductions Subject to 2% for Other than Educator Costs

Itemized Deductions Phase-Out Amounts

Limitation on Tax Benefit of Itemized Deductions

OBBBA Imposes Reduction on Itemized Deductions

Enhanced Child Tax Credit

Increase in Tax Credit Amount to $2,200

Child Tax Credit Phaseout and Refundable/Nonrefundable Amounts

Social Security Number Requirement

Partial Child Tax Credit

Alternative Minimum Tax (AMT)

Alternative Minimum Tax Exemption Amount Increased

Summary

Chapter Review

Chapter 2 – TCJA Provisions Affecting Individuals

Chapter 2 Learning Objectives

Introduction

Kiddie Tax Modifications

Section 529 (Qualified Savings Plan) Changes

Postsecondary Credentialing Expenses Now Qualified Higher Education Expenses

SECURE Act 2.0 Permits Transfer of Limited §529 Funds to Roth IRAs

ABLE Account Changes

Tax-Deferred Account

ABLE Account Distributions

ABLE Account Contributions

TCJA Changes to ABLE Accounts

Additional Designated Beneficiary Contributions Permitted

OBBBA Increases ABLE Contribution Limit

Extension of Rollovers from Qualified Tuition Programs to Able Accounts

OBBBA Makes Rollovers to ABLE Accounts Permanent

Extension and Enhancement of Savers Credit Allowed For Able Contributions

OBBBA Repeals Savers Match & Increases Contribution Considered for Credit

Discharge of Student Loan Indebtedness

OBBBA Impact on Discharge of Student Loan Indebtedness

Affordable Care Act (ACA) Provisions

Individual Requirement to Maintain Health Coverage

Penalty for Failure to Maintain Individual Health Coverage

Exemptions from Penalty for Failure to Maintain Health Coverage

Individual Mandate Penalty – 2019 and Later

Roth Recharacterization

Changes in Employee Fringe Benefits

Tax Treatment of Transportation Fringe Benefits

Real Property Depreciation

Permanent Enhancement of Low-Income Housing Tax Credit

OBBBA Increases Low-Income Housing Tax Credits & Permits 100% Expensing

Estate and Gift Tax Exclusion

Summary

Chapter Review

Chapter 3 – Business-Related TCJA Provisions Affecting Individual Taxes

Chapter Learning Objectives

Introduction

Nature of the 20% Deduction for Qualified Business Income

OBBBA Increases REIT’s Asset Limit Held in Taxable REIT Subsidiary

Deduction Eligibility

Pass-Through Deduction for Qualified Trade or Business

Pass-Through Deduction for Owners with Taxable Income Exceeding Threshold

OBBBA Makes QBI Deduction Permanent, Extends Phase-In & Establishes New Deduction

New Minimum Deduction

Taxable Income Threshold

QBI Component Calculation

Pass-Through Business

Qualified Trade or Business

Exception for Specified Service Trade or Business Based on Taxpayer’s Income

Qualified Business Income

Exceptions to Qualified Business Income

Combined Qualified Business Income

Qualified REIT Dividend

Qualified Publicly Traded Partnership Income

Qualified Property

Depreciable Period

W-2 Wage Limitation

Determining W-2 Wages

Unmodified Box Method

Modified Box 1 Method

Tracking Wages Method

Computing the QBI Deduction

Threshold Amount

Schedule C Provisions

Entertainment Expenses

Food and Beverage Expenses

Temporary Increase in Business Meal Deductibility

OBBBA Increases Meal Deduction for Restaurants, Caterers, Fishing Boats & Processers

Section 179 Expense Limits

Increased Dollar Limitations Apply to Expensing Depreciable Assets

Bonus Depreciation

OBBBA Makes Bonus Depreciation Permanent, Increases Percentage

OBBBA Permits Special Depreciation Allowance for Qualified Production Property

Luxury Auto Depreciation Limits

Luxury Auto Depreciation Limits

Listed Property Updates

Bonus Depreciation vs. Section 179

Limitation of Business Interest

Net Operating Loss Changes

TCJA NOL Changes Amended by CARES Act

Modification and Extension of Limitation on Excess Business Losses of Noncorporate Taxpayers

OBBBA Reduces EBL Limitation & Makes Rule Permanent

Summary

Chapter Review

Glossary