American Rescue Plan Act of 2021 (Currently Unavailable)

Author: Annette Nellen

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