American Rescue Plan Act of 2021

Author: Annette Nellen

CPE Credit:  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

Designed For
Practitioners who want to consider the effect of the American Rescue Plan Act changes on 2021 estimated taxes and tax planning.

Topics Covered

  • 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

Learning Objectives

  • 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

Level
Update

Instructional Method
Self-Study

NASBA Field of Study
Taxes (1 hour)

Program Prerequisites
Basic understanding of tax preparation.

Advance Preparation
None

Registration Options
Quantity
Fees
Regular Fee $49.00

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