Federal Taxable & Non-Taxable Income
Author: Jane Ryder
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC |
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2028 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
Many categories of income are not taxable for federal tax purposes and some of the taxable categories may be excludable from income in certain cases. Similar issues exist for non-taxable income, there may be situations when generally non-taxable income is considered taxable. This course will review many scenarios taxpayers may encounter related to taxable and non-taxable income. We’ll discuss disaster payments and reimbursements, legal settlements including lemon law recoveries, employee benefits, inheritance, gifts, scholarships, Form 1099-K issues, disability payments, Social Security benefits eligible for income averaging, bartering, hobby income, royalties, prepaid income, assignment of income, 1099-C: cancellation of debt, alimony versus family support, Form 1099-Q, H.S.A or F.S.A. distributions, stock options, constructively received income, and taxable income arising from certain partnership or S corporation distributions of cash and assets.
Publication Date: August 2025
Topics Covered
- Taxable & non-taxable income
- Cancellation of Debt
- Legal settlements
- Lemon law
- Alimony
- Assignment of income
- Deemed income
- 1099-C
- 1099-K
- 1099-Q
- Hobby income
- Disaster payments
- Disability Income
- Social Security Benefits
- Employee Fringe benefits
Learning Objectives
- Identify when generally non-taxable income may be subject to tax
- Determine when certain types of taxable income may be eligible for an exclusion from income
- Explain how to correctly report cancellation of debt income
- Determine which legal settlements are taxable
- Explain specific components of hobby income, gig economy income, assignments of income and more for tax issues
- Determine when certain distributions from pass-through entities may be subject to tax in excess of the partner or shareholder’s pro rata share of profits or losses
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
