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"
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
Instructors
Sidney Kess
Sidney Kess, Esq., CPA, JD, LLM, Of Counsel, Kostelanetz & Fink, LLP, New York, NY is a nationally renowned tax expert and author/coauthor of hundreds of tax books on financial and estate planning. Having lectured to more than 50,000 practitioners on tax, financial, and estate planning, he is one of the nation’s best known lecturers in continuing professional education. Mr. Kess is consulting editor of CCH Incorporated’s Financial and Estate Planning Repoorter. Mr. Kess was chairman of the advisory board of Tax Hotline and is a member of the PPC Tax Action Panel. He has edited a column on “Tax Tips” for the New York Law Journal for the past 43 years. Mr. Kess edits the AICPA’s CPA Client Bulletin and CPA Client Tax Letter. He is Executive Editor of CPA Magazine. He has also written hundreds of AICPA tax workshops, audio and video programs, and is the recipient of the AICPA Distinguished Lecturer Award. Mr. Kess is often quoted in The Wall Street Journal, The New York Times, and other national publications. He was included in Accounting Today’s “100 Most Influential CPAs in the U.S.” for several years as well as CPA Magazine’s “Most Influential CPAs in the U.S.” Mr. Kess was the National Director of Tax at KPMG Main Hurdman and a tax partner at KPMG Peat Marwick. Mr. Kess is the recipient of the AICPA’s “Special Recognition Award” for his many years of contributions to the AICPA’s continuing professional education program, received the 2011 AICPA Gold Medal Award for Distinguished Service to the Accounting Profession, which is the highest award in the industry, and was elected to the Estate Planning Hall of Fame by the National Association of Estate Planners & Councils for his distinguished service to the field of estate planning. The AICPA established the Sidney Kess Award for Excellence in Continuing Education to recognize individual CPAs who have made significant and outstanding contributions in tax and financial planning and whose public service exemplifies the CPA profession’s values and ethics. Sidney Kess was the first recipient of this Award. Mr. Kess was inducted into the New York State Society of CPAs’ Hall of Fame. He received his JD from Harvard University School of Law, LLM from New York University Graduate School of Law, and BBA from Baruch College.
Barbara Weltman
Barbara Weltman, JD, has written extensively on a wide variety of tax, small business, and financial planning matters for both professionals and the general public. The Wall Street Journal called her “the guru of small business taxes.” She is the author of a number of self-study programs for CCH. She is publisher of Big Ideas for Small Business® and Idea of the Day® found at www.BigIdeasForSmallBusiness.com and is a guest blogger for the SCORE and many other sites. Ms. Weltman is a graduate of Brooklyn Law School.