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.
This three CPE hour course, the fourth in the series, covers gross income from a number of sources, including interest, dividends, Social Security, alimony and other types of ordinary income. Tax developments, including the Consolidated Appropriations Act, 2022, the Inflation Reduction Act of 2022, and other tax legislation, IRS pronouncements, and court decision, are extensive. They impact 2022 tax year returns that will be filed during the 2023 filing season and refund opportunities for earlier, “open” years; as well as point the way to strategic planning in 2023 and beyond. This course brings the tax preparer "up-to-speed" in preparing 2022 tax returns for the 2023 filing season.
Publication Date: September 2022
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
- Calculations
Learning Objectives
- 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"
- Identify the backup withholding rate for 2022
- Identify the number of Applicable Federal Rates (AFRs) with respect to certain below-market loans
- Identify the tax rate on interest on U.S. Treasury bills, notes, and bonds
- Identify the dividend tax rate for joint filing taxpayers with taxable income over $517,200 in 2022
- Identify what percentage of interest on a personal injury award is subject to tax
- Identify what percentage of interest on U.S. government securities is fully taxable
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (3 hours)
Program Prerequisites
None
Advance Preparation
None
Instructors
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.
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.
Greg White
Greg White, CPA, taught for 14 years as an adjunct professor for Golden Gate University. He’s admitted to practice before the United States Tax Court. He is a founder and shareholder, in WGN PS in Seattle, WA. He has been named a Top 50 IRS Representation Practitioner in the U.S. by CPA Magazine and has taught for a number of professional organizations. Greg enjoys the technical side of tax, but also likes to have fun in class.