1040 Preparation and Planning 7: Other Income and Exclusions (2019) (Currently Unavailable)

Author: Barbara Weltman, Sidney Kess

Gross income is all wealth that flows to the taxpayer other than as a mere return of capital, provided that it is not specifically excluded. This on-demand course explains what an exclusion is, reviews exclusions from gross income, including tax treatment of gifts and inheritances, taxable and tax-free damages, and miscellaneous tax-free income. It also discusses income from commercial annuities, IRAs, and retirement plans, required minimum distributions, and distribution and withholding rules for IRAs and qualified retirement plans.

Publication Date: November 2018

Designed For
Tax practitioners

Topics Covered

• Exclusions from gross income
• Tax treatment of gifts and inheritances
• Taxable and tax-free damages
• Miscellaneous tax-free income
• IRAs and retirement plans
• Required minimum distributions
• Commercial annuities
• Qualified retirement plans

Learning Objectives

• 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
• Report income from a commercial annuity
• Cite the starting date for required minimum distributions
• Recognize differences in distribution rules for IRAs versus qualified retirement plans
• Explain distribution rules for Roth IRAs
• Classify withholding rules for distributions from qualified retirement plans and IRAs

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None