American Rescue Plan Act of 2021
Author: Annette Nellen
||1 hour for CPAs
1 hour Federal Tax Law Updates for EAs and OTRPs
1 hour Federal Tax Updates for CTEC
The latest round of COVID-19 relief includes several tax changes and is expected to be enacted this month (March). Key changes include a third round of economic impact payments and increases to the child, dependent and earned income tax credits. Additional changes address health care and the employee retention credit.
Publication Date: March 2021
Practitioners who want to consider the effect of the American Rescue Plan Act changes on 2021 estimated taxes and tax planning.
- The size and eligibility rules for the 2021 recovery rebates for individuals
- Unemployment Compensation Exclusion
- 2021 Recovery Credit/Economic Impact Payments
- Improvements to the Premium Tax Credit: Relevant to 2020 tax returns!
- Changes to Family and Low‐Income Credits and Exclusions
- Employment and SE Tax Credits
- Health Insurance Changes
- Additional Changes with Tax Relevance
- Next Steps
- Identify 2021 law changes of the American Rescue Plan and the relevance to compliance and planning
- Identify who is eligible for the 2021 recovery credit
- Recognize how to explain key tax benefits of the American Rescue Plan and their effective dates
- Identify the approximate total of all COVID-19 legislative actions
- Describe the exclusion for unemployment compensation amount as a special rule in 2020
- Identify the maximum EIP3 amount per qualifying dependent
NASBA Field of Study
Taxes (1 hour)
Basic understanding of tax preparation.