This CPE course, the seventh in the series, covers various types of income not discussed in other courses in this 1040 Preparation and Planning series, as well as exclusions from gross income. The course reflects changes made by the Consolidated Appropriations Act, 2022, the Inflation Reduction Act of 2022, and other tax legislation, IRS pronouncements, and court decisions. 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
Tax practitioners
Topics Covered
- Commercial Annuities
- General Rule
- Expected Return
- Cashing in Annuities
- Partial Annuitization
- Penalties on Early Distributions
- Employee Annuities
- Employee Annuities Commencing Before November 19, 1996
- IRA Distributions
- Reporting IRA Distributions
- Required Minimum Distributions
- Figuring RMDs
- Beneficiary Distributions
- Determining the Beneficiary
- Owner Dies after 2019
- Owner Dies before 2020 and on or after the Required Beginning Date
- Distributions over Owner's Remaining Life for a pre-2020 Death
- Owner Dies before 2020 and before the Required Beginning Date
- Special Rule for Roth IRAs
- Qualified Charitable Distributions
- Annual Exclusion for QCDs
- Qualified HSA Funding Distribution
- Losses on IRAs
- Roth IRAs
- Withholding on Annuities, Retirement Plans, and IRAs
- Exclusions in General
- Exclusions
- Gifts and Inheritances
- Insurance Proceeds
- Life Insurance
- Pre-Death Distributions and Loans from Modified Endowment Contracts
- Rules
- Accelerated Death Benefits
- Limitations and Conditions
- Endowment Policies
- Surrender of Life Insurance Policy
- Death Benefits Paid by an Employer
- Death Benefits Paid to Military Personnel
- Proceeds from Accident and Health Insurance Policies
- Sickness and Accident Benefits
- Rebates Resulting from the Medical Loss Ratio
- Disability Policies
- Higher Education Emergency Relief Fund Payments
- Provider Relief Fund Payments
- Casualty Insurance and Other Reimbursements
- Taxation of Reimbursed Living Expenses
- Scholarships and Fellowships
- Workers' Compensation
- Medicare
- Damages for Injuries and Claims
- Miscellaneous Income
- Reporting Income and Exclusions
- Common Inclusions and Exclusions from Gross Income
- Coverdell Education Savings Accounts
- Contributions to Coverdell ESAs
- Qualified Education Expenses for Purposes of Coverdell ESAs
- Distributions
- Reporting for Coverdell Education Savings Accounts
- Qualified Tuition Plans
- Gift Tax Consequences for Contributions to 529 Plans
- ABLE Accounts
- ABLE Account Advantages
- Miscellaneous Exclusions
- Disaster Relief and Mitigation Payments
- Foster Care Payments
- Difficulty-of-Care Payments
- Public Assistance
- Qualified Medicaid Waiver Payments
- Union Benefits
Learning Objectives
- Report income from a commercial annuity
- Calculate required minimum distributions (RMDs)
- Explain distribution rules for Roth IRAs
- State the withholding rules for distributions from qualified retirement plans and IRAs
- Explain the concept of an exclusion
- Describe the tax treatment of gifts and inheritances
- Distinguish between taxable and tax-free damages
- List miscellaneous income that is tax free
- Identify the penalty percent that applies to the earnings portion of a distribution from a commercial annuity taken prior to age 59½
- Identify the maximum annual exclusion for QCDs for each spouse filing a joint return
- Identify at what percent insurance payments for property damage covered by an insurance policy are taxable
- Identify the maximum annual contribution to a Coverdell ESA per designated beneficiary
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 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.