- NY Credits : 5.0
- TX Credits : 5.0
- IRS Enrolled Agent Credits : Federal Tax/Tax Related Matters - 5.0
- IRS Non-Credentialed Return Preparer Credits : Federal Tax - 5.0
Individual Income Tax - Above-the-Line Deductions
An important aspect of individual income tax preparation is adjusted gross income (AGI). A significant part of understanding the concept of AGI is knowing how adjustments to gross income affect AGI and, ultimately, an individual's tax liability. This course covers the most common adjustments to gross income and presents a hands-on approach to arriving at AGI, which is the benchmark for claiming many beneficial deductions or qualifying for tax credits.
This course has been updated for legislation in the Tax Cuts and Jobs Act, including the temporary suspension of the moving expense deduction for tax years beginning after December 31, 2017 and before January 1, 2026, except for members of the Armed Forces on active duty and, due to a military order, move because of a permanent change of station; and the change in the rule for the deduction and income inclusion related to alimony payments. Additionally this course is updated to reflect inflationary adjustments for health saving account contribution limits, individual retirement account contribution limits and adjusted gross income phase-out thresholds, and the deductible rate for moving expense mileage. The new design for Form 1040 including the additional schedules needed to complete more complex returns is addressed in detail, particularly Schedule 1 (Form 1040) used to report all adjustments to gross income.
This basic level course is most beneficial to professionals new to this subject who may be at the staff or entry level in organization but also for a seasoned professional with limited exposure to this topic.
Upon successful completion of this course, the user should be able to:
identify potential adjustments to gross income;
calculate and report deductible health savings account contribution, individual retirement account contribution, the student loan interest deduction, and miscellaneous other adjustments to gross income; and
complete Form 1040 and Schedule 1 (Form 1040) used to report adjustments to gross income.