- NY Credits : 2.0
- TX Credits : 2.0
- IRS Enrolled Agent Credits : Federal Tax/Tax Related Matters - 2.0
- IRS Non-Credentialed Return Preparer Credits : Federal Tax - 2.0
The basic principle of all deductions is that deductions are not allowed unless specifically authorized by law. Further, no deduction is allowed for personal, living, or family expenses (including medical expenses) unless specifically authorized. [IRC Sec. 262(a)] It is important to determine whether a deduction is taken for adjusted gross income or from adjusted gross income. Keep in mind, however, that a deduction may be claimed in more than one place (e.g., a depreciation deduction may be a trade or business expense or a deduction attributable to rental income). This program focuses on the deductions taken for adjusted gross income, or the above-the-line deductions.
This course is most appropriate for the professional with detailed knowledge in Form 1040 who may be at a mid-level position within an organization with operational or supervisory responsibilities, or both.
Upon successful completion of this course, the user should be able to:
recognize the rules regarding deductions for the expenses of reservists, qualified performing artists, and state and local government officials paid on a fee basis; contributions to a health savings account; moving expenses; student loan interest; as well as other adjustments to income,
determine which expenses a self-employed individual may deduct, such as self-employment tax, health insurance costs, and contributions to a Keogh plan, a Simplified Employee Pension (SEP), or a SIMPLE plan,
recognize the rules for claiming a deduction for alimony payments as well as the tax consequences of excess front-loaded alimony payments, and
identify the tax consequences and rules associated with contributions to and distributions from traditional IRAs, Roth IRAs, Coverdell ESAs, and new ABLE accounts.