Federal Income Tax Changes - 2018 (Text - Based)

Each year, various limits affecting income tax preparation and planning change. Some changes commonly occur each year as a result of inflation indexing, while others occur because of new legislation or the sunsetting of existing law. In addition, the Tax Cuts and Jobs Act of 2017 became effective in 2018.

This course will examine the tax changes that took effect in 2018 that are more significant from the perspective of an income tax preparer. Some context will be supplied, as appropriate, to assist readers in understanding the changes. In addition to these customary annual changes affecting various limits, other tax changes effective in 2018 that were brought about by the Tax Cuts and Jobs Act of 2017 will be discussed.

I. Calculate the standard mileage deductions for –

    a. Use of a personal vehicle to obtain medical care, and

    b. Charitable use of a personal vehicle;

II. Identify the 2018 standard deduction amounts available to taxpayers;

III. Recognize the changes made to the alternative minimum tax exemption amount for 2018;

IV. Apply the tax-free United States savings bond income limits for taxpayers who paid qualified higher education expenses in 2018; and

V. Calculate the tax-deductible premiums for and tax-free benefits received under qualified long-term care insurance contracts.

VI. Calculate the retirement savings contribution credit available to eligible taxpayers;

VII. Recognize the rules and income limits applicable to eligibility for the earned income credit; and

VIII. Apply the adoption credit rules.

IX. Health flexible spending arrangement contribution limits;

X. Penalty for individuals who fail to comply with the PPACA mandate to maintain minimum essential coverage in 2018; 

XI. Small business health care tax credit;

XII. Large employer shared responsibility provision; and

XIII. Large employer reporting and notification requirements.

Instructional Method: Self-Study

Review Date: 04/04/2018

Required Components: Written Materials

CPE Final Exam Required Passage Grade: 70%

Please Note: This course must be completed within 1 year of date of receipt of this course for CPE Credit.

Field of Study: Tax

Level of Knowledge: Basic to Intermediate

Prerequisite: None

Advanced Preparation: None

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FurtherEd is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of the individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.