1040 Preparation and Planning 4: Gross Income: Interest, Dividends, and Other Ordinary Income (2021)

Author: Sidney Kess, Barbara Weltman

CPE Credit:  2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC

This fourth course in the 1040 Preparation and Planning series covers gross income from interest, dividends, Social Security, alimony, unemployment benefits, cancellation of debt, and other income. A case study that walks you through calculating reportable income is included in this course.

Publication Date: November 2020

Designed For
CPAs, Tax Return Preparers, Enrolled Agents, Tax Attorneys, Tax Practitioners

Topics Covered

  • Items Includible in Gross Income
  • Introduction to Interest Income
  • Timing of Interest Income
  • Interest Income from REMICs and CMOs
  • Refunds on Adjustable Rate Mortgages
  • Imputed Interest Income from Below-Market Loans
  • Interest Income from Foreign Financial Accounts
  • Interest Paid by the U.S. Government
  • Treasury Inflation - Indexed Debt Securities
  • Interest Income on U.S. Government Savings Bonds
  • College Savings Bonds
  • Interest on State and Municipal Obligations
  • Dividends
  • Tax Rates on Qualified Dividends
  • Reporting Dividends on the Tax Return
  • Foreign Dividends
  • Stock Dividends
  • Stock Rights
  • Constructive Dividends
  • Liquidating Dividends
  • Dividends on Insurance Policies
  • Distributions from Savings Accounts
  • Mutual Fund Dividends
  • Real Estate Investment Trust (REIT) Dividends
  • Tax Refunds, Credits, or Offsets of State and Local Income Taxes
  • AMT and the Refund
  • Alimony
  • Child Support
  • Property Settlements
  • Unemployment Benefits
  • Social Security Benefits
  • Other income
  • Cancellation of a Debt
  • Hobby Income
  • Taxable Distributions from Certain Tax-Advantaged Accounts
  • Economic Impact Payments
  • Calculations

Learning Objectives

  • Correctly report interest income
  • Identify qualified dividends
  • Figure the includible portion of Social Security benefits
  • Describe the taxation of alimony under pre-2019 divorces
  • Describe the taxation of unemployment benefits
  • Distinguish cancellation of debt income that is taxable from COD income that is excludable
  • List "other income"


Instructional Method

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites

Advance Preparation

Registration Options
Regular Fee $59.00

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