The objective of this course is to train new staff accountants, data processing employees, para-professionals, and bookkeepers to prepare a complicated federal individual income tax return. Over the years, thousands of new staff have received practical, hands-on experience to become familiar with tax forms. This course covers the latest tax law changes, making it essential for your new staff.

Major Topics:

  • Preparation of various Form 1040 individual tax returns and schedules; provided answers include “filled-in” forms
  • Tax filing status – Rules for filing status and planning opportunities and pitfalls
  • Dividends and interest – Ordinary, return of capital, and capital gain distribution dividends; tax-exempt interest, original issue discount, etc.
  • Security transactions – From Form 1099-B to Form 8949 to Schedule D, plus mutual fund sales and related basis issues
  • How the Affordable Care Act affects tax returns
  • Self-employed person issues
  • Sale and exchange of property – Understanding Form 4797 and depreciation recapture; capital gains
  • Schedule C deductions
  • A working understanding of passive losses – How to handle rental property and how the passive loss rules flow to the tax forms
  • Itemized deductions – A thorough understanding of what’s deductible and what’s not
  • Interest deductions – Limitations and timing problems
  • Retirement contributions and education credits and deductions
  • Tax computation – The Kiddie tax, AMT, regular tax, tax credits
  • Individual problems illustrating form preparation for various items
  • Impact of recent legislation and forms changes on the 1040 

Learning Objectives:

  • Learn complicated issues of filing status and dependency exemptions
  • Learn about taxable/tax-exempt interest issues and dividend income
  • Understand issues with reporting capital gains transactions
  • Complete a comprehensive problem related to Schedule C of the Form 1040 and also one related to Form 4797
  • Overview of passive activity rules
  • Complete a comprehensive problem related to Schedule A
  • Learn about IRA contributions, Self-employed retirement plans, child-care credits, and the adoption tax credit
  • Complete a comprehensive problem related to computation of an individual’s federal income-tax liability

Designed For: New staff and para-professionals who prepare individual returns
Level of Knowledge: Basic
Prerequisite: None
Advanced Preparation: None
Credits: 8