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LEARNING RESOURCES

Individual Tax Fundamentals — Tax Staff
claim the credit previously because it didn’t benefit Essentials
them significantly may need a reminder. For a fuller
Understand how to respond to the needs of new and
review of both the CTC and child and dependent
existing clients. Add value to your tax practice with
care credit changes for 2021, see “ARPA Expands tax-saving strategies for your individual clients.
Tax Credits for Families,” The Tax Adviser, July
tinyurl.com/46anr2kn
2021, tinyurl.com/4b359h5t.
CPE SELF-STUDY
EIP, PTC, and EITC
ARPA authorized a third round of economic
Intermediate Individual Taxation — Tax Staff
impact payments (EIPs) for 2021 of $1,400 ($2,800
Essentials
for married joint filers), plus $1,400 for each
Learn tax tips and the latest tax strategies to help
dependent or, alternatively, a recovery rebate credit
your individual clients. Understand how to respond
claimable on the return. In an ideal world, clients
to the needs of new and existing clients.
who received a payment would remember it or, bet-
tinyurl.com/4s83ytje
ter still, slip into their tax organizer a confirmatory
IRS Notice 1444, which would prevent the kind of CPE SELF-STUDY
second-guessing many preparers no doubt remem-
ber from 2020’s first and second EIP rounds.
Individual Tax Planning — Tax Staff Essentials
ARPA excused any taxpayer who on a 2020
tax year return was required to reconcile advance Help your clients build and preserve wealth through
payments of a premium tax credit (advance PTC) insightful and creative tax planning techniques. Get
the latest techniques for building and conserving
with the full PTC from having to add to taxable
wealth through proactive tax planning and
income any excess advance PTC (Sec. 36B(f)(2) investment strategies.
(B)(iii)). For 2021, a different form of PTC relief
tinyurl.com/3274yh8h
may apply under Sec. 36B(g): Any taxpayer who
received or was approved to receive unemployment CPE SELF-STUDY
compensation for any week during 2021 is treated
as an “applicable taxpayer” for purposes of the PTC For more information or to make a purchase, visit aicpa.org/cpe-learning or call
regardless of household income, and any household the Institute at 888-777-7077.
income over 133% of the poverty line for the
taxpayer’s family size is not taken into account for
the credit.
Many taxpayers claiming an earned income tax the front of Form 1040, U.S. Individual Income Tax
credit (EITC) in 2020 were aided by a provision Return. However, its wording has been brought into
in the Consolidated Appropriations Act, 2021 line with the form’s instructions, asking: “At any
(CAA), P.L. 116-260, allowing them to substitute time during 2021, did you receive, sell, exchange,
2019’s earned income for that of 2020 in calculating or otherwise dispose of any financial interest in
the EITC. ARPA provides a similar special rule any virtual currency?” Last year, the question asked
for 2021 as well, allowing a two-year lookback to whether taxpayers received, sold, sent, exchanged, or
2019, and enhances the EITC in several other ways. otherwise acquired virtual currency.
Notably, for individuals with no qualifying children, Likewise, the maximum $300 ($600 for joint
ARPA increases the credit amount and phaseouts returns) deduction for cash charitable contributions
and lowers the qualifying taxpayer age range below by nonitemizers reappears, but in a different place.
25 (to 18 for a qualified former foster youth or While 2020 returns deducted it “above the line”
qualified homeless youth, 24 for a specified student, in calculating adjusted gross income (AGI), 2021
and 19 in all other cases) and raises it to above 64 returns slip it “below the line,” as a deduction from
(without limit). AGI to arrive at taxable income.
Virtual currency and charitable contribution BUSINESS TAX PROVISIONS
deduction for nonitemizers Qualified leave credits and the ERC
Two other common provisions for tax year 2021 are Three key elements of business tax relief that
similar but slightly different from their 2020 itera- ARPA enacted or extended into 2021 — the credit
tions. The question about virtual currency is still on for qualified sick and family leave wages (paid

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