- 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
This program focuses on the calculation of tax on an individual income tax return, including the so-called kiddie tax, whether it is elected to be included on the parent's return or reported separately. The program also covers taxes reported on Page 2 of Form 1040, or Schedule 4 (Form 1040), Other Taxes. These additional taxes include the alternative minimum tax, the self-employment tax, Social Security and Medicare tax on unreported tip income, additional taxes on retirement plans and other tax-favored accounts, the individual shared responsibility penalty, the Medicare taxes on certain higher-income individuals, the net investment income tax, as well as other miscellaneous taxes. This course is most appropriate for the professional with detailed knowledge in IRS Form 1040 related to income and other taxes who may be at a mid-level position within an organization with operational or supervisory responsibilities, or both.
This course is updated to reflect legislative changes included in the Tax Cuts and Jobs Act of 2017 (TCJA) signed into law by President Trump on December 22, 2017. Changes in the tax law addressed in this course include the expansion of the income tax brackets for all taxpayers as well as a reduction in tax rates, new breakpoints for imposition of 15% and 20% capital gains/qualified dividend rates which are now set as statutory dollar amounts, substantial increase to the standard deduction for all taxpayers, suspension of the deduction for personal and dependency exemptions, the suspension of various personal deductions comprising the miscellaneous itemized deductions subject to the 2% of adjusted gross income limitation, changes to the tax rate schedule applicable to the kiddie tax, increased alternative minimum tax exemptions and threshold for phase-out of the exemption amount, and the newly redesigned Form 1040 and supporting schedules.
Upon completion of this course, the user should be able to:
use the tax tables and tax rate schedules to determine the tax on a 2018 individual income tax return,
apply the kiddie tax provisions,
calculate the alternative minimum tax (AMT) and identify adjustments and preference items as well as current AMT exemption and phaseout amounts,
apply the self-employment tax,
properly report Social Security and Medicare tax on tip income not reported to an employer,
identify the additional taxes on qualified retirement plans and other tax-favored accounts and to whom they apply,
identify the tax consequences of obtaining excess advance premium tax credits as well as failing to maintain minimum essential insurance coverage,
differentiate between and calculate the Medicare tax on net investment income and the additional Medicare tax on earned income, and
determine how and when other taxes are reported, such as recapture taxes and household employment taxes.