Federal Income Tax Changes - 2025 5 CPECode: 26-FEDCH5

106 pages
Course description and objectives:

Introduction to the Course

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. This course will examine the tax changes affecting 2025 as a result of passage of the SECURE Act 2.0, H.R.1, An Act to Provide for Reconciliation, and the inflation-changed limits effective for 2025 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.

Learning Objectives

Upon completion of this course, you should be able to:

·        List the 2025 changes in various amounts including the –

o   Standard mileage rates,

o   Standard deduction,

o   Deduction for State and Local Taxes (SALT Deduction),

o   Tip deduction,

o   Tax on overtime,

o   Car loan interest deduction,

o   Clean Energy Incentives,

o   Bonus Depreciation,

o   Research and Development expenses,

o   Sustainable Aviation Fuel Credit,

o   Limitation of Business Interest,AMT exemption amount,

o   Limits related to income from U.S. Savings Bonds for taxpayers paying higher education expenses, and

o   Deductions for qualified long-term care insurance premiums;

·        Identify the 2025 tax credit changes affecting the –

o   Saver’s credit,

o   Child Tax Credit

o   Additional Child Tax Credit,

o   Earned income credit, and

o   Adoption credit;

·        Recognize the 2025 changes affecting –

o   Health Savings Account (HSA) and Archer Medical Savings Accounts (MSA) requirements and contribution limits,

o   Roth IRA eligibility, and

o   Traditional IRA contribution deductibility for active participants in employer-sponsored qualified plans;

·        List the changes effective for 2025 with respect to the –

o   Small employer premium tax credit, and

o   Applicable large employer mandate; and

·        Determine the changes to retirement plans resulting from the Secure Act 2.0 that affect income tax preparation.  

Presentation Method: QAS Self-Study

Category: Taxes

CPE credit: 5 Hours

Program Level: Update

Prerequisites: None

Advance Preparation: None

Exam expiration date: Participants must submit exams for grading within one year from the date of purchase