PWX1721: Economic Response to Coronavirus Study Guide

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

Course material is the text “Economic Stimulus Legislation: Federal Response to the Coronavirus Pandemic.”

Chapter 1 –

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

The learning objectives for this lesson are to gain an understanding of:

  • 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 –
    • Eligibility,
    • Maximum loan amounts, and
    • Forgiveness criteria;
  • Identify the rules governing the Pandemic Unemployment Assistance program, including –
    • The additional unemployment benefits available,
    • The eligibility requirements,
    • The tax treatment of benefits, and
    • The credit for employee retention.

Chapter 2 –

Assignment: Chapter 2 <<>> Review Questions Chapter  #2: # 1-4

The learning objectives for this lesson are to gain an understanding of:

  • 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 –

Assignment: Chapter 3 <<>> Review Questions Chapter #3: # 1-4

The learning objectives for this lesson are to gain an understanding of:

  • 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;
  • Identify the Section 1031 time-sensitive action deadlines; and
  • Describe the CARES Act provisions affecting businesses, including the –
    • Correction regarding the deductible period applicable to qualified improvement property,
    • Modification of limitation on losses for non-corporate taxpayers,
    • Changes to the limitation on business interest expense deductions,
    • Exclusion of certain employer payments of student loans, and
    • Expansion of economic injury disaster loans (EIDLs).

Chapter 4 –

Assignment: Chapter 4 <<>> Review Questions Chapter #4: # 1-2

The learning objectives for this lesson are to gain an understanding of:

  • Describe primary objective of the Coronavirus Preparedness and Response Supplemental Appropriations Act;
  • Identify the principal intent of the Families First Coronavirus Response Act (FFCRA); and
  • 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 including
    • Partially tax-free unemployment benefits in 2020;
    • Advance payment of recovery rebates in the form of refundable tax credits available to taxpayers meeting certain income criteria;
    • COBRA tax-free refundable advance payment premium assistance;
    • Enhanced child tax credit (CTC) for eligible taxpayers;
    • Enhanced earned income tax credit (EITC);
    • Temporarily increased child and dependent care tax credit and employer-provided dependent care assistance;
    • Temporary expansion of the § 36B premium tax credit and relaxation of excess credit repayment requirements;
    • Temporary non-inclusion in income of student loan discharge; and
    • Limited extension of the § 461(l) limitation on excess business losses of noncorporate taxpayers.