Introduction to Taxation / General Overview
Upon completion of this chapter, you should have a general overview of who should file a tax return and the appropriate filing status for the taxpayer. You will become familiar with the new Form 1040 and its three accompanying schedules, and how the complexity of a taxpayer’s tax situation can impact which schedules will be required.
A summary of the Tax Cuts and Jobs Act of 2017 and the impact of the PATH Act of 2015 is explained. The due date of the return is explained, as well as the steps to apply for an extension of time to file. The different accounting periods and methods will be addressed.
The filing statuses available to taxpayers will be identified, and the differences between a resident and nonresident alien will be described. Each box on Form W-2 will be explained in detail, including the applicable codes and their relationship to the tax return.
Finally, the paid preparer’s responsibility regarding his signature, identification number (PTIN), retention of records requirement, and penalties associated with noncompliance will be discussed.
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
• Dependent
• Exemptions
• Filing Status
• Gross Income
• Nonresident Alien
• Resident Alien
• Taxable Income
Course Features
- Lectures 2
- Quizzes 0
- Duration 50 hours
- Skill level All levels
- Language English
- Students 423
- Certificate Yes
- Assessments Yes
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Evolution of Taxation
In order to understand taxation, it is helpful to understand its history in the United States. Although many taxpayers complain about taxes, it is not a new concept. It was introduced in the United States after the Revolutionary War when the new country was faced with tremendous war debt and the need to create economic stability and prosperity. As a means of funding these financial issues, Congress placed an excise tax on the sale of whiskey.
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What is a Tax Preparer? What is their role?
A taxpayer may find that the most efficient and cost-effective manner to comply with filing a timely and accurate tax return is to employ the services of a professional tax preparer.
