PWX8020: 2021 Annual Federal Tax Refresher Study Guide

2021 Annual Federal Tax Refresher 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.

Domain 1 – New Tax Law/Recent Updates

Assignment: Chapter 1 <<>> Review Questions

Group #1: # 1-3,

Group #2: #1-2

When you have completed the Chapter 1 text, you should be able to:

  • Identify the inflation adjustments to various federal limits;
  • Explain the impact of the new standard mileage provisions;
  • Determine the maximum age for traditional IRA contributions;
  • Describe the change in the required minimum distribution age for traditional IRAs and retirement plans;
  • Recognize the tax treatment of qualified birth or adoption distributions;
  • Describe the distribution requirements imposed on non-spouse inherited IRA beneficiaries;
  • Identify the change in the taxation of children’s unearned income;
  • Describe the changes in § 529 plan distribution rules as they apply to –
    • Repayment of student loans, and
    • The expansion of qualified expenses to include expenses associated with apprenticeship programs;
  • Calculate The change in the AGI threshold for medical expense deductions; and
  • Describe the current status of tax extenders applicable to –
    • Tax credits for non-business energy property,
    • Payment of tuition and fees
    • Payment of mortgage insurance premiums, and
    • Cancellation of primary residence indebtedness.

Domain 2 – General Income Tax Review

Assignment: Chapter 2 <<>> Review Questions

Group #3: #1-2,

Group #4: #1-2,

Group #5: #1-2,

Group #6: #1-2,

Group #7: #1-2,

When you have completed the Chapter 2 text, you should be able to:

  • Identify those items included in a taxpayer’s taxable earnings;
  • Determine the tax treatment of foreign accounts and trusts;
  • Recognize the items included in self-employment income and expenses;
  • Distinguish between a hobby and a business for tax purposes;
  • Calculate the tax deduction for business use of a home;
  • Identify the recordkeeping requirements to substantiate Schedule C entries;
  • Understand the tax treatment of retirement income;
  • List the factors considered in determining the tax treatment of capital gains and losses;
  • Describe the principal Schedule A changes resulting from the TCJA;
  • Recognize the eligibility requirements for various tax credits;
  • Describe the rules governing a taxpayer’s tax withholding and estimated tax payments;
  • Recognize the options available to a taxpayer for paying any tax due or receiving a tax refund; and
  • Identify the due dates of income tax returns.

Domain 3– Practices, Procedures & Professional Responsibility

Assignment: Chapter 3 <<>> Review Questions Group #8: #1-3

When you have completed the Chapter 3 text, you should be able to:

  • Identify the red flags indicating possible tax-related identity theft and suggested assistance to its victims;
  • Understand the laws and regulations requiring privacy and security of taxpayer data and the best practices tax preparers may implement to help assure it;
  • Describe the purpose of individual taxpayer identification numbers, their effect on tax credits and how to renew them;
  • Recognize the penalties applicable to a tax return preparer under Title 26;
  • Identify the due diligence requirements imposed on tax return preparers with respect to claiming head of household filing status, EITC, CTC and AOTC;
  • Understand the e-file requirements; and
  • Recognize the Annual Filing Season Program requirements.