Staff Training Part 2: Individuals

Author: Greg White

Tax practice is a complicated field. We’ll break it down into understandable concepts, including common types of income, and the different types of itemized deductions. We’ll also cover important tax credits, including the earned income tax credit and tuition credits.

Publication Date: June 2021

Designed For
Designed for tax professionals involved in federal tax planning or tax return preparation.

Topics Covered

• Transferring Child Tax Credit
• Dependent Care Credit
• Earned Income Tax Credit
• Complexity
• Education Incentives
• Saving for College: Saving Taxes
• Tuition Credits (AOTC and Lifetime Learning)
• Preparer Due Diligence
• Stress and Growth
• Shifting Gears — Itemized vs. Standard Deduction
• Form 1040
• Choice #1: Standard Deduction
• Interest Expense (Itemized Deductions)
• Mortgage Interest — Personal Residences
• Points
• Mortgage Interest Expense
• Investment Interest Expense
• Medical Expenses (Itemized Deduction)
• Property/Income/Sales Taxes
• Fascinated vs. Frustrated
• Charitable Contributions (Itemized Ddn)
• Form 8283
• Employee Expenses — Get Reimbursement
• Form W”2
• Schedule B: Interest and Dividend Income
• 1099”INT
• 1099”DIV
• Retirement Plan Distributions
• Form 1099”R
• Recap of Staff Training Parts 1 & 2

Learning Objectives

• Recognize how to compute the earned income tax credit
• Recognize how to compute the tuition credit
• Identify limitations on the amount of itemized deduction that can be claimed for home mortgage interest and personal taxes
• Identify correct statements regarding the dependent care credit
• Describe 529 plans
• Recognize which form should be used in various client scenarios
• Identify correct statements regarding charitable contributions
• Describe common 10% early withdrawal exception for non-IRA type retirement plans
• Identify correct statements regarding the lifetime learning credit
• Identify the purpose of Form 8867
• Recognize which tax credit was implemented to incentivize people to work and provides greater credits for families with more children
• Describe an example of itemized deductible interest
• Differentiate types of investment income that gives rise to investment interest expense
• Identify the limit for most itemized taxes (e.g., property, sales tax, etc.) for married taxpayers filing separately
• Recognize which type of charitable contribution in excess of $5,000 requires a qualified appraisal
• Identify which form provides the amount of wages subject to tax and the amount of dependent care benefits paid by the employer
• Recognize which Schedule of Form 1040 you should list interest and dividend income
• Describe which type of income included on Form 1099-DIV represents a return of capital

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (4 hours)

Program Prerequisites
None

Advance Preparation
None