PWX1021: Federal Tax Update 2021 Study Guide

Federal Tax Update 2020 Study Guide

The study guide is provided to guide you through the course material in a step by step format.

Course material is a PDF document.

Chapter 1 – Changes in Various Limits

Assignment: Chapter 1 <<>> Review Questions  Group #1: # 1-5

Upon completion of this chapter, you should understand:

  • Standard Mileage Rates
  • Business Use of a Taxpayer’s Personal Vehicle
    • Use of a Personal Vehicle for Charitable Purposes
    • Use of a Taxpayer’s Personal Vehicle to Obtain Medical Care
    • Use of a Taxpayer’s Personal Vehicle to Move
    • Moving Expenses in Military Relocations
  • Standard Deduction Increased
    • Standard Deduction for Blind and Senior Taxpayers
    • Standard Deduction Eligibility
  • Exemption Amount
  • Alternative Minimum Tax (AMT)
    • Tax Preference Items Added Back to Produce Alternative Minimum Taxable Income
    • Alternative Minimum Tax Exemption Amount Increased
  • Education Savings Bond Program
    • Qualified Education Expenses
      • Eligible Educational Institutions
      • Qualified Education Expenses Reduced by Certain Tax-free Benefits Received
    • Figuring the Tax-Free Amount
      • Education Savings Bond Program Eligibility Subject to Income Limits/Filing Status
      • Determining Taxpayer’s Modified Adjusted Gross Income
  • Limitation on Itemized Deductions
  • Qualified Long-Term Care Insurance Premiums and Benefits
    • Favorable Benefits Tax Treatment Reserved for Chronically-Ill
    • Tax-Qualified Long Term Care Premiums Deductible within Limits
    • Tax-Qualified Long Term Care Insurance Benefits Tax-Free within Limits
  • Social Security Taxable Earnings Limit
  • Maximum Capital Gain/Dividend Tax Rate Increased for High-Income Taxpayers

Chapter 2 – Tax Credit Changes

Assignment: Chapter 2 <<>> Review Questions Group #2: #1-6

When you have completed this chapter, you should be able to:

  • Calculate the retirement savings contribution credit available to eligible taxpayers;
  • Recognize the rules and income limits applicable to eligibility for the earned income credit; and
  • Apply the adoption credit rules.

Chapter 3 –PPACA-Related Tax Changes

Assignment: Chapter 3 <<>> Review Questions Group #3: #1-5

Upon completion of this chapter, you should be able to identify the changes made by the PPACA effective in 2020 related to:

  • Health flexible spending arrangement contribution limits;
  • Small business health care tax credit;and
  • Large employer shared responsibility provision;

Chapter 4 – Changes in Archer MSAs, HSAs & IRAs

Assignment: Chapter 4 <<>> Review Questions Group #4: #1-5

Upon completion of this chapter, you should be able to:

  • Recognize the eligibility rules applicable to Archer MSAs and HSAs;
  • Calculate the maximum contributions that may be made to an Archer MSA;
  • Apply the tax treatment rules to contributions to and distributions from Archer MSAs and HSAs;
  • Calculate the traditional IRA tax deduction available to a taxpayer who is an active participant in an employer-sponsored retirement plan; and
  • Recognize the MAGI limits that apply to a taxpayer’s eligibility to make a Roth IRA contribution.

 

Chapter 5 – Tax Cuts and Jobs Act

Assignment: Chapter 5 <<>> Review Questions Group #5: #1-3

Upon completion of this chapter, you should be able to:

  • Identify individual tax rate changes affecting taxpayers;
  • Recognize the changes made to the standard deduction available to taxpayers;
  • Calculate the alternative minimum tax;
  • Determine the amount of assets that may be passed tax-free at death; and
  • Identify the qualified business income (QBI) threshold amount.