Guide to 1040 Preparation and Planning

This interactive on-demand course introduces the fundamentals of federal income tax and gives an overview of the general income tax structure. It also includes some basic tax accounting essentials: tax year and accounting method. It discusses taxpayer classification, the purpose of the income tax return and forms, who must file a return, recordkeeping requirements and more.

Filing status is the status used to determine the applicable tax liability from the tax table or rate schedules. It also impacts certain limitations, thresholds, and other rules. While filing status may seem like the simplest entry on the tax return, there is often much confusion. This interactive on-demand course, 1040 Preparation and Planning 2: Filing Status (2017), discusses the various filing statuses and the related requirements, as well as innocent spouse relief.

Exemptions are subtractions from adjusted gross income. Because each exemption claimed reduces taxable income by a significant amount, the rules governing this subject are of great importance. There are two types of exemptions: personal exemptions for the taxpayer and the taxpayer’s spouse, and dependency exemptions for dependents. This interactive on-demand course discusses the requirements related to dependency exemptions and multiple support agreements, and explains the exemption phase-out.

This interactive on-demand course, the fourth in the series, covers gross income and discusses entries on Form W-2 as it relates to the income tax return. It also identifies various inclusions and exclusions, such as the foreign income exclusion; and meals, lodging, retirement plan contributions, life insurance, medical insurance, and other benefits provided by employers.

This fifth course in the series covers gross income from interest, dividends, Social Security, alimony, unemployment benefits, cancellation of debt, and other income. Topics examined include how to report these types of gross income and exclusions that are available. How to calculate the taxation of Social Security benefits is also discussed.

This course discusses gains and losses. It defines basic terms, such as amount realized, basis, realized gain, and realized loss. It explains the basic requirements for nonrecognition of gain on involuntary conversions, and computation of the basis of property. The course looks at the distinction between capital and ordinary assets, which is important because capital gains and losses are reported differently from ordinary gains and losses, and the deduction of capital losses is sharply limited. It also covers Form 8949 and Schedule D of Form 1040.

This course covers exclusion of gain from sale of a principal residence, and how the business use of a home affects that. It also explains expenses that can increase or decrease the basis in a principal residence. Additionally, it covers how to handle like-kind exchanges (including exchanges of insurance policies) property settlements on marital dissolutions, involuntary conversions, and special exchange rules.

Gross income is all wealth that flows to the taxpayer other than as a mere return of capital, provided that it is not specifically excluded. This course explains what an exclusion is, reviews exclusions from gross income, including tax treatment of gifts and inheritances, taxable and tax-free damages, and miscellaneous tax-free income.

This course discusses income from commercial annuities, IRAs, and retirement plans, required minimum distributions, and distribution and withholding rules for IRAs and qualified retirement plans.

This course looks at adjustments to gross income, including deductions don’t require itemizing such as educator expenses, expenses of Reservists, performing Artists, and fee-Basis Government Officials. It also discusses HSAs, IRA deductions; tax treatment of alimony, child support, and property settlements; and much more. Finally, it explains how to arrive at adjusted gross income.

This course discusses the current standard deduction, and reviews deductible medical expenses, deductible interest, and deductible taxes. Limitations on these deductible expenses are also discussed.

This course reviews the following itemized deductions: charitable contribution deductions, including which organizations qualify to receive deductible contributions, how different types of contributions are handled, and substantiation requirements; casualty and theft losses; unreimbursed employee business deductions; and other miscellaneous itemized deductions. It also discusses the phase-out for high-income taxpayers.

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.

This course covers types of tax credits, including refundable and nonrefundable tax credits; figuring each type of personal tax credit; which credits are reported in Tax and Credits and which in Other Taxes; and business tax credits.

This course covers types of tax credits, including refundable and nonrefundable tax credits; figuring each type of personal tax credit; which credits are reported in Tax and Credits and which in Other Taxes; and business tax credits.

This course reviews tax withholding, when estimated tax payments are necessary and how to calculate them, and tax credits that can be used to offset tax liability.

This course looks at issues affecting tax practice, such as when and where to file returns; payment options; filing extensions; electronic filing; amended returns; offers in compromise; audit issues; and rules for return preparers. It also reviews installment agreements, interest and penalty suspension, electronic filing, special time limit situations, and interest on underpayments and overpayments.

This course looks at expenses and deductions for business, including: travel, entertainment, home office, work-related education, depreciation, losses, farming, rents and royalties, investments and income-producing activities. It also covers research and development expenditures, the domestic activities deduction, expenses that are part business and part personal, and much more.