Tax Cuts and Jobs Act - Individual Tax Preparation - For the 2025 Tax Year (Course Id 2455)

Taxes - Taxes for Course Id 2455

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.

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 - 2455

Course Learning Objectives

• 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 Military Relocations

Itemized Deductions Schedule A

Medical Expense AGI Threshold

State and Local Tax Deductions

Home Mortgage Interest Deduction

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

Casualty and Theft Loss Deduction

Miscellaneous Itemized Deductions Subject to 2% of AGI Threshold

Itemized Deductions Phase-Out Amounts

Enhanced Child Tax Credit

Increase in Tax Credit Amount to $2,000

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

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

Saver’s Credit

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

Real Property Depreciation

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

Deduction Eligibility

Pass-Through Deduction for Qualified Trade or Business

Pass-Through Deduction for Owners with Taxable Income Exceeding Threshold

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

Section 179 Expense Limits

Bonus Depreciation

Qualified Property

Luxury Auto Limits

Listed Property Updates

Net Operating Loss Changes

TCJA NOL Changes Amended by CARES Act

Summary

Chapter Review

Glossary