- CTEC and OBTP Approved
- Includes Tax Business Start-Up Guides
Upon completion of this course, you will be able to:
- Prepare most business and non-business individual tax returns
- Perform a thorough interview with a taxpayer
- Determine a taxpayer’s filing status and eligibility for exemptions
- Accurately report income and deductions for a taxpayer
- Determine a taxpayer’s eligibility for credits and deductions
- Compute income for Schedules C, E and F
- Determine depreciation deductions and eligibility for Section 179
- Accurately calculate a taxpayer’s refund or balance due
- Advise a taxpayer in tax planning strategies
Course Outline:
Chapter 1: General Material
- Determine who should file a return.
- Identify what filing status the taxpayer should use.
- Determine what IRS forms to use.
- Identify filing requirements for most taxpayers and their dependents.
- Determine the due dates of various tax forms.
- Understand how to apply for an extension of time to file.
- Differentiate various accounting periods and methods.
- Understand the signature and identification number requirements of a paid preparer.
Chapter 2: Standard Deduction and Exemptions
- Understand how to calculate the standard deduction.
- Determine when to use the standard deduction.
- Define what constitutes an exemption.
- Identify when the taxpayer can claim an exemption.
- Understand the support issues.
- Understand the steps necessary to file a decedent’s tax return.
- Identify the rules for tax withholding and estimated tax payments.
Chapter 3: Income
- Identify various types of income such as employee compensation, fringe benefits, tips, alimony, and other income.
- Identify where to report these forms of income.
- Determine when it is appropriate to use Forms 1040, 1040A, and 1040EZ.
- Be aware of Form 4137, Social Security Tax on Unreported Tip Income.
Chapter 4: Interest and Dividend Income
- Know the different types of interest income.
- Understand the difference between taxable and nontaxable interest.
- Identify where to report interest income.
- Understand how to report dividend income and nontaxable distributions.
- Understand the client interview process.
Chapter 5: Earned Income Credit
- Identify the definition of earned income for Earned Income Credit.
- Describe the requirements for qualifying children for Earned Income Credit purposes.
- Realize that taxpayers without children may qualify for the Earned Income Credit.
- Determine how to complete Schedule EIC.
- Identify where the Earned Income Credit appears on the Forms 1040 and 1040A.
- Understand IRS due diligence requirements.Module 1 Final Exam
Chapter 6: Tax Credits — Child Care and Others
- Describe the qualification requirements for various tax credits (Child Tax Credit, Child Care
- Credit, Credit for the Elderly and Disabled, the Additional Child Tax Credit and Education
- Credits).
- Understand the requirements for Form 2441.
- Prepare Form 2441, Child and Dependent Care Expenses and or Schedule 2.
- Identify Form 8863, Education Credits.
- Understand the requirements for IRS Form 1040, Schedule R, Credit for the Elderly or the Disabled.
- Identify IRS Form 8812, Additional Child Tax Credit.
Chapter 7: Retirement Income and Other Types of Income
- Recognize retirement income, including income from pensions, annuities, Social Security, and equivalent retirement benefits. Students will learn how to “read” Forms 1099-R and SSA-1099.
- Understand other types of income such as barter, partnership and recoveries.
- Identify how to report rental of personal property, repayments, royalties, and income that is not taxed.
- Determine where to report information from Forms 1099-R and SSA-1099 on the IRS Form 1040 series.
Chapter 8: Adjustments to Income
- Understand the various adjustments to income, including Individual Retirement Arrangements (IRAs—Traditional and Roth) and SIMPLE IRAs.
- Identify where to report these items on tax returns.
- Chapter 9: Itemized Deductions
- Determine whether standard or itemized deductions are the most advantageous for the taxpayer.
- Identify what items qualify as taxes, and eligible interest deductions. Name eligible medical expenses.
- Understand the limitations on itemized deductions.
- Calculate the value of charitable contributions and understand how to complete Form 8283.
- Describe how to report casualties and thefts and how to complete Form 4684.
Chapter 10: Electronic Filing
- Understand the rules and regulations governing electronic filing.
- Describe the various methods of receiving a refund through electronic filing.
- Identify the warning signs of taxpayer fraud.
- Understand the requirements for signing electronic returns.
- Identify how to correct an electronic return rejected by the IRS.
Chapter 11: Employee Business Expense and Miscellaneous Itemized Deductions
- Describe expenses that qualify as employee business expenses.
- Differentiate between the Standard Mileage Rate and the Actual Auto Expense methods of tracking auto expenses.
- Identify what expenses are deductible for the business use of a home.
- Describe deductible travel expenses and deductible entertainment expenses.
Chapter 12: Education Tax Benefits
- Identify who can claim Education Tax Credits.
- Define what expenses qualify under the available credits.
- Differentiate between the Hope Credit and the Lifetime Learning Credit. Name adjustments to Qualified Education Expenses.
- Recognize the MAGI phase out limits for Educational Tax Credits.
- Compute the Student Loan Interest Deduction.
- Identify expenses which qualify for work-related education.
Chapter 13: Capital Gains and Losses
- Define the terminology unique to Capital Gains and Losses.
- Identify the capital gains tax rates.
- Describe basis of property including inherited and gifted property.
- Compute the basis of real estate and gain or loss on sale.
Chapter 14: Depreciation and Disposition of Business Property
- Classify the different types of property eligible for depreciation.
- Differentiate between various depreciation methods.
- Describe repairs and replacements affect the basis of property.
- Define the terminology unique to depreciation transactions.
- Compute the Section 179 Deduction.
- Introduce the students to disposition of business property
Chapter 15: Self-Employment Income
- Provide the definition of a sole proprietor.
- Differentiate between an independent contractor and statutory employee.
- Describe the requirements for deducting self-employed health insurance and retirement plan contributions.
- Differentiate between activities qualify as a business and which ones qualify as a hobby.
- Describe the advantages and disadvantages of selecting sole proprietorship as the form of business entity.
- Differentiate between income and non income items.
- Describe the Uniform Capitalization Rules.
- Define the terminology unique to inventory valuation.
Chapter 16: Rental Property
- Compile and report rental income.
- Classify deductible rental expenses.
- Describe examples of repairs and improvements to rental property.
- Determine the nuances of renting vacation homes and other dwelling units.
- Define the limits on rental and passive activity losses.
- Describe the rules for property and how they may change if the taxpayer is a real estate professional.
Chapter 17: Farm Income
- Emphasize the becoming an RTRP and maintaining a PTIN
- Define the steps necessary to become an RTRP
- Discuss tax return preparer requirements
- Become familiar with RTRP Competency Exam Information
- Introduce study materials necessary to become an RTRP
- Describe paid preparer responsibilities
Chapter 18: Alternative Minimum Tax, Less Common Credits and Penalties
- Determine which taxpayers are affected by Alternative Minimum Tax.
- Classify who is considered an innocent spouse and who is considered an injured spouse.
- Define various credits such as the credit for electric vehicles.
- Describe the various civil and criminal penalties for failure to comply with income tax laws.
Chapter 19: Payments, Extensions and Amended Returns
- Compute the “kiddie” tax.
- Describe how to file an amended return.
- Define the due dates for tax payments.
- Determine the “nanny” tax.
Chapter 20: Ethics and Responsibilities of Tax Professionals
- Describe professional responsibilities in tax return preparation.
- Determine the actions necessary to maintain client confidentiality.
- Identify the requirements to practice before the IRS.
Tax Business Start Up Guides:
- Guide to Starting a Tax Business and Getting Clients:
- Getting Started
- Taking the Courses
- Starting Your Own Business
- Specifics for a Tax Business
- How Do You Get Clients? (Includes sample marketing pieces)
- Bootstrap Marketing Materials You’ll Need
- Meeting With Your Client
- How to Price Your Services
- Continuing Education
- Client Retention
- Becoming a Bricks and Mortar Business
- Guide to Policies and Procedures for a Tax Business:
- Introduction
- Company Philosophy
- Personnel Policies
- Tax Office Policies and Procedures
- Tax Preparation Procedures
- Processing Tax Returns
- Client Folder Setup
