- NY Credits : 3.0
- TX Credits : 3.0
- IRS Enrolled Agent Credits : Federal Tax/Tax Related Matters - 3.0
- IRS Non-Credentialed Return Preparer Credits : Federal Tax - 3.0
IRC Section 61 defines gross income as all income from whatever source derived except as otherwise provided in the Internal Revenue Code. It is easy to see that gross income is an all-encompassing concept that includes any accession to wealth from whatever source and in whatever form realized. Income that is generally includible in gross income may fall within certain exceptions that make it excludable. For example, interest income is generally includible in gross income, but certain interest income derived from state or local (municipal) bonds is specifically tax-free or excludable from gross income. [IRC Sec. 103] Furthermore, the Internal Revenue Code specifically names certain items of income as includible so that there is no doubt that they are taxable. The following material discusses items that are specifically characterized in the Internal Revenue Code as either includible or excludable. This course is most appropriate for the professional with detailed knowledge in Federal taxation and IRS Form 1040 who may be at a mid-level position within an organization with operational or supervisory responsibilities, or both. Notably, the six schedules that existed for 2018 are now just three schedules for 2019. Form 1040 is revised for 2019 tax returns. In addition, as required by the Bipartisan Budget Act of 2018, the IRS created a new tax return, Form 1040-SR, available instead of Form 1040, for seniors age 65 or older that meet certain requirements.
Upon successful completion of this course, the user should be able to:
properly report various items of income, such as unreported tip income, interest income, and dividends,
recognize amounts that are excludable from gross income and the conditions that apply, and
identify the basic concepts and types of bankruptcy as well as the effects on individual tax liability.