1040 Preparation and Planning 12: Figuring Tax Liability and Making Tax Payments (2020)

Author: Barbara Weltman, Sidney Kess

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. It concludes with a review of tax withholding, when estimated tax payments are necessary and how to calculate them, and tax credits that can be used to offset tax liability.

Publication Date: November 2019

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
• Review tax withholding
• When estimated tax payments are necessary and how to calculate them
• Tax credits that can be used to offset tax liability

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
• Determine the sources of income tax withholding
• Complete the schedule for estimated tax payments
• Figure estimated tax installments and when to make payments
• List tax credits treated as tax payments

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (1 hour)

Program Prerequisites
None

Advance Preparation
None