1040 Preparation and Planning: Figuring Tax Liability (Currently Unavailable)

Author: Barbara Weltman, Sidney Kess

After entering income and deductions on the tax return, there is an additional subtraction for personal exemptions, and itemized or standard deductions to arrive at taxable income. This is the amount on which the tax is figured. The tax is reduced by tax credits to which a taxpayer is entitled and is increased by additional taxes, recapture amounts, and tax penalties. This course examines figuring tax liability: figuring taxable income; Tax Tables; Tax Computation Worksheet; Schedules D and J; computations for lump-sum distributions; kiddie tax; tax on child’s investment income; and other issues.

Publication Date: December 2016

Designed For
Tax practitioners

Topics Covered

• Individual tax return with the form 1040
• Tax Tables
• Tax computation worksheet
• Schedule D and J
• Lump-sum distributions
• Kiddie tax
• Child's investment income
• Personal and dependency income

Learning Objectives

• Figure taxable income
• Determine whether to use the Tax Table or Tax Computation Worksheet to figure the tax
• Determine whether Schedule D, a separate worksheet, or Schedule J is necessary to figure the tax
• Figure special tax computations for lump-sum distributions
• Figure the kiddie tax and the tax on a child's investment income reported on a parent's return

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (1 hour)

Program Prerequisites
None

Advance Preparation
None