There are 15 Sections to this course:
- Determine who should file a return
- Identify filing requirements for most taxpayers
- Identify filing requirements for dependents
- The Tax Cuts and Jobs Act of 2017
- Discuss Form 1040 and the three numbered schedules that accompany the form
- Discuss the new Form 1040SR for Seniors
- Determine when, where, and how to file; then, choose the method of payment
- Summarize accounting periods and methods
- Discuss the requirement for a correct Social Security number or taxpayer identification number when filing a tax return
- Identify the correct filing status for taxpayers
- Determine if the taxpayer is a resident or nonresident alien
- Discuss the Importance of the Path Act
- Describe the information presented on the taxpayer’s W-2 form
- Discuss Paid Preparer Penalties and Responsibilities
- Provide an overview of the tax return filing process
The Key Terms that you will learn about are:
• Adjusted Gross Income (AGI)
• Adjustments to Income
• Filing Status
• Gross Income
• Nonresident Alien
• Resident Alien
• Taxable Income
- Lectures 16
- Quizzes 12
- Duration 40 hours
- Skill level All levels
- Language English
- Students 321
- Certificate Yes
- Assessments Self
Reasons for a Taxpayer to File a Return, Even When Not Required
There are additional reasons a taxpayer must file a tax return, such as they owe special taxes, are subject to recapture of certain credits, or received advance payments of the premium tax credit.
Filing Requirement for Most Taxpayers
Filing requirements are based on the standard deduction amount for the taxpayer. The filing status determines the standard deduction.
Dependent Filing Requirements
If a parent (or someone else) can claim the person as a dependent, and any of the situations listed in Charts 1-1 and 1-2 apply to them, they must file a return.
Tax Cuts and Jobs Act 2017
It is important to note the evolution of taxes and the importance of paying taxes. However, on December 22, 2017, President Donald Trump signed into law a new bill that would forever change the dynamics of taxes.
Which Schedule(s) Should Be Used?
For the 2019 tax filing season, taxpayers would notice a significant difference with the Form 1040. The TCJA not only changed the dynamics of taxes, but it changed the design of the form all taxpayers were used to seeing.
Understanding Form 1040SR
To use the new form, filers, including both spouses, must be at least age 65 though they don't have to be retired.
Filing the Tax Return and Making Payments
The fiscal year (a year ending on the last day of any month except December, or a 52-53-week tax year) individual taxpayers file 3½ months after the end of the fiscal year. If the due date falls on a Saturday, Sunday, or a legal holiday, the due date extends to the next regular business day.
Accounting Periods and Methods
Most taxpayers use the calendar year accounting period for their individual income tax returns. A taxpayer must choose the accounting period he intends to use when they file their first income tax return. The accounting period cannot be longer than 12 months.
Determining the filing status is the first step when preparing a taxpayer’s return. It is also the most important.
Resident and Nonresident Aliens
To determine the residency status of an individual, the preparer must first determine if the individual is a U.S. citizen.
The Path Act
The Protecting Americans from Tax Hikes Act of 2015 (the PATH Act), was enacted on December 18, 2015.
Understanding the W2
All employers engaged in a trade or business and who pay wages, including noncash payments, of $600 or more per year for services performed by an employee must file a Form W-2 even if they didn’t withhold any taxes.
Paid Preparer Requirements
Anyone paid to prepare a return must sign it in the space provided. A paid preparer can sign the return manually or use a rubber stamp, mechanical device, or computer software program.
Get Started Preparing a Return
Tax preparation doesn’t require someone to be a math major, but basic math comprehension is necessary
Chapter 1 - Study Questions