1040 Preparation and Planning 8: Adjustments to Gross Income (2023) (Currently Unavailable)

Author: Barbara Weltman, Sidney Kess, Greg White

This CPE course, the eighth in the series, examines adjustments to gross income, including deductions that don’t require itemizing; HSAs; IRA deductions; tax treatment of alimony, child support, and property settlements; and how to arrive at adjusted 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

• Adjusted Gross Income Section
• Items Deductible from Gross Income
• Educator Expenses
• Educators
• Expenses of Reservists, Performing Artists, and Fee-Basis Government Officials
• Health Savings Accounts
• Eligibility for HSAs
• Limits on HSA Contributions
• Making Deductible Contributions
• Treatment of HSA Distributions
• Moving Expense Deduction
• Deductible Part of Self-Employment Tax
• Self-Employed SEP, SIMPLE, and Qualified Plans
• Self-Employed Health Insurance Deduction
• Penalty on Early Withdrawal of Savings
• Alimony
• IRA Deduction
• Roth IRAs
• Full Contributions to Roth IRAs
• Interest on Student Loans
• Other Deductions

Learning Objectives

• List deductions that can be claimed without itemizing
• Determine eligibility for a health savings account
• Figure IRA deductions
• Describe the difference in tax treatment between alimony for pre-2019 and post 2018 divorces, as well as child support and property settlements
• Calculate how to arrive at adjusted gross income
• Identify the deduction that is subtracted in the adjusted gross income section
• Identify up to what amount teachers and other educators can deduct of their out-of-pocket costs in 2022 for classroom materials as an above-the-line deduction
• Identify the schedule of Form 1040 or 1040-SR in which self-employment tax is figured

Level
Intermediate

Instructional Method
Self-Study

NASBA Field of Study
Taxes (1 hour)

Program Prerequisites
Understanding of the form 1040

Advance Preparation
None