One-on-One Tutoring for Registered Tax School Students

Level: Beginner

Delivery Method: Self-Study

To earn Certificate of Completion:

• Pass Final with 70% (or better)
• Complete Course Survey

Included in this course:

• 15 Chapters (eBook)
• Quizzes
• Videos
• Practice Tax Return
• Practice Tax Return Final Exam
• Federal Final Exam

This chapter will cover tax preparer due diligence and penalties. When the taxpayer files a return with refundable credits the tax preparer needs to complete an accurate tax return and complete Form 8867, which is attached to the taxpayer’s return. The following refundable credits will be discussed in this course:

• Earned Income Credit (EIC).
• Child Tax Credit (CTC).
• Additional Child Tax Credit (ACTC).
• Other Dependent Credit (ODC).
• American Opportunity Tax Credit (AOTC).

The tax preparer will learn how to collect taxpayer’s information needed to prepare an accurate tax return. This course will give detailed interviewing example questions to understand how to collect the necessary information. Completing an interview to gather taxpayer’s information to understand the taxpayer’s situation to prepare an accurate tax return is an essential step.

Sample questions are provided for each section of the tax return to help the student understand the importance of knowing the “how” to and “why” ask questions to gain the necessary information from the taxpayer.

This chapter offers a review on who qualifies for the standard deduction, and what circumstances allow taxpayers to claim a higher standard deduction. You will also learn what an exemption is, (even though it has been suspended due to TCJA). Filing status is used to determine filing requirements, standard deduction, correct tax, and taxpayer’s eligibility for certain credits and deductions. If more than one filing status applies to the taxpayer, the tax professional should choose the one that lowers the amount of tax for the taxpayer. 

The IRS has the authority to tax all income from whatever source derived. This includes compensation for services, gains from dispositions of property, interest and dividends, rent and royalties, pensions and annuities, gambling winnings, and even illegal activities. All such income a person receives is collectively referred to as “worldwide income.” However, not all money or property is taxable or subject to tax. This course discusses the different types of taxable and nontaxable income and show you where and how to report such wages on a professionally prepared tax return. A tax professional must recognize the different kinds of taxable income, tax-exempt income, and other income included in Schedule 1, line 8, and must know how to figure out the taxable percentage on social security benefits.

In this chapter, students will learn how various expenses are used to “adjust” or lower the taxpayer’s income to arrive at his or her adjusted gross income (AGI). They will also learn how the Tax Cuts and Jobs Act (TCJA) has impacted adjustments at the federal level and how to handle any previous-year returns that preceded those TCJA-mandated changes.

This chapter provides an overview of miscellaneous taxes from the Form 1040 and reported on Schedule 2 that a taxpayer might be assessed. This includes excess Social Security tax, additional taxes on IRAs, the Alternative Minimum Tax, and household employment taxes. 

This chapter includes how to calculate a short term and/or long-term gain or loss. The student will understand holding period and what is a capital asset. Almost everything a taxpayer owns and uses for personal or investment purposes is a capital asset. When a capital asset is sold, the difference between the basis in the asset and the amount the item is sold for is either a capital gain or capital loss. 

If taxpayers are unable to file their federal individual tax returns by the due date, he or she may be able to qualify for an automatic six-month extension of time to file. The taxpayer can either electronically file or mail Form 4868 to the IRS to file for the extension. If the taxpayer has filed a return and realizes that a mistake was made, he or she would file an amended return by using Form 1040-X. 

Electronic filing (also referred to as E-File and E-filing) is the process of submitting tax returns over the internet via properly-certified tax software. The E-File system has made tax preparation significantly easier, and the IRS notifies software users within 24-48 hours if they accepted or rejected the tax return. E-filing is not available year-round but rather begins sometime in January and ends sometime in October; the IRS determines when exactly e-filing begins and ends each year, and states follow whatever dates the IRS sets. An electronic return originator (ERO) is the individual who originates the electronic submission of the tax return. To file a return electronically, the individual needs to be an Authorized IRS e-File Provider.