EA Exam Prep Part 1: Income (Currently Unavailable)

Author: Eva Rosenberg

This is the third class of the EA Exam Prep Part 1 series. Is it true that you have to claim as income the gift certificate that your client gave you? What about the local landscaper who is paying for summer help “under the table?” What should you do about the investment income belonging to the child of your client? TaxMama® knows! In this information-packed course, she will teach you the difference between the various forms of income and how to report them. Learn the difference between earned and unearned income, taxable and non-taxable income, and what is and is not reportable.

Publication Date: June 2019

Designed For
Tax practitioners of all levels, regardless of experience, who want to learn about the various categories of income– and more. Excellent training for staff working in tax offices, accounting practices, and corporate settings, as well as independent bookkeepers. This course provides an in-depth look at income and how to report it. It is especially helpful to those with no hands-on experience preparing tax returns – and those who are returning to tax preparation after years in corporate or other jobs. This course is also designed to help CPAs earn their Enrolled Agent credential so they can practice anywhere in the country without re-certifying.

Topics Covered

• Earned and unearned income
• Taxable and nontaxable income
• Reportable and not reportable income
• Tax-free income
• How to treat "off the books" income
• Considerations and complications of interest income
• Early withdrawal penalties
• Gifts from vendors
• Credit card rewards
• Installment income
• Lower than market rate loans and inputed interest
• US Bonds interest
• Kiddie Tax and Form 8615, Tax for Certain Children Who Have Unearned Income
• Dividend income and disguised interest income
• Taxable stock splits
• Capital gains
• Investment interest
• Retirement income, including Social Security, Equivalent Railroad Retirement, Annuities, and other retirement income sources
• Form 1099R, Distribution from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, Etc.
• Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts
• Lump sum distributions and death benefits
• IRA rollovers
• Stock and commodity options
• Taxable income sources from divorce (QDRO ordering retirement plan distribution, IRA rollovers)

Learning Objectives

• Differentiate between earned and unearned income
• Identify taxable vs non-taxable income
• Recognize which income is reportable and which is not
• Identify complications that may arise when dealing with interest
• Distinguish between capital gain vs. other profitstaxable
• Identify how to report income from various sources
• Identify the various aspects of retirement income

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None