1040 Workshop Sec. 1
This is Section 1 of the 1040 Workshop. The complete 4-part course is designed to make the practitioner comfortable with “high traffic” issues, enabling participants to discuss and handle individual 1040 tax essentials. The course examines and explains practical aspects of return preparation and individual planning, bridging the gap between theory and application. Significant new developments are summarized with an emphasis on tax savings ideas. Practical applications and illustrations are used to systematically explore tax deferral, reduction, and elimination opportunities accompanying return preparation. For example, the analysis of gross income is discussed together with income splitting techniques; property transactions are examined alongside like-
Section 1: Individual Tax Elements covers the following topics, and more:
* Tax rates and tables
* Filing status
* Gross income
* Dividends and distributions
* Discharge of debt income
* Exclusions from income
* Nonbusiness and personal deductions
* Education and medical expenses
* Casualty and theft losses
* Tax credits
This course is accepted by the IRS as CE credit for enrolled agents.
Course Information
Price: $63
This course is included in our Mega CPE Special and our Unlimited Tax Bundle
Course No. 9012-1
Instructional Delivery Method: QAS Self-Study
Format: Online pdf (175 pages). Printed book available.
Prerequisites: General understanding of federal income taxation
Advance Preparation:None
Level: Overview
CPE Credit: 6.5 hrs. (6 hrs. for IRS PTIN reporting)
Field of Study: Taxes: Technical
Course expiration: You have one year from date of purchase to complete the course.
Course Revision Date: January 2023
Objectives
Individual Tax Elements
Learning Objectives
1. Identify federal revenue tax sources noting the definitive role of gross income and, determine a client’s tax liability using current rates, tables, statutory amounts, and their withholding and/or estimated tax responsibility.
2. Specify the various filing statuses and their filing requirements noting the advantages and disadvantages of each.
3. Determine what constitutes gross income under §61 noting the tax treatment of compensation, fringe benefits, rental income, Social Security benefits, alimony, prizes and awards, identify dividend and distribution types and their tax differences, and specify how debt discharge can result in taxable income.
4. Identify the mechanics of income exclusions such as education-related exclusions, gift and inheritance exclusions, insurance, personal injury awards, interest on state and local obligations, and the foreign earned income exclusion.
5. Recognize income tax deductions and their use to reduce tax liability by:
a. Identify personal, spousal and dependency exemptions and reporting requirements including pre-2005 dependency rules;
b. Specify the deductibility of §163 interest categories, §162 educational expenses, pre-2018 §217 moving expenses, pre-2018 §165 casualty & theft losses, and §164 taxes noting their proper reporting and substantiation;
c. Determine variables that impact the deductibility of charitable contributions, and identifying qualified organizations, permissible contributions contribution limitations, their tax treatment, and substantiation requirements;
d. Identify the deductibility of medical care expenses including medical insurance, meals and lodging, transportation, home improvements and lifetime care payments noting the impact of Medicare;
e. Specify deductions that are subject to the 2% of AGI limitation, deductions not subject to the pre-2018 2% limit, and nondeductible expenses.
6. Determine distinctions among several types of tax credits identifying the eligibility requirements and noting the cited changes created by recent tax legislation to individual tax returns.
Good Presentation