Welcome! Individual Taxation Study Course
This classroom provides the study material for the Enrolled Agent Review Part I, Individuals and The Individual Taxation Study Course
Please Submit the Attendance Form as you enter each classroom session.
Please review the information for Continuing Education and the Special Enrollment Test Specifications Sections 1-5, located on the right.
Then follow these steps:
- Study the material within each unit.
- View the presentations.
- Use the reference material for study and for research.
- Take the quizzes- Keep copies of all quizzes as they are returned to you.
- Please Enter your PTIN as your ID
If you have questions on any chapter subject area, submit
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form.
Part I -INDIVIDUALS
Course # RU73Z-P-00241-16-O
Section 1: Preliminary Work and Taxpayer Data
1.1 Preliminary Work to Prepare Tax Returns
1. Use of prior years' returns for comparison, accuracy, and carryovers for current year's return
2. Taxpayer biographical information (e.g., date of birth, marital status, dependents)
3. Residency status and/or citizenship (e.g., citizen, visas, green cards, resident alien or non-resident alien)
4. Filing Requirements for tax Returns and Extensions ( e.g., dates)
5. Taxpayer filing status (e.g., single, MFJ, MFS, QW, HOH)
6. Sources of world-wide and non-taxable income (e.g., interest, wages, business, sales of property, dividends, rental income, flow-through entities, alimony received)
7. Sources of applicable exclusions and adjustments to gross income (e.g., retirement plans, HSAs, alimony paid, health insurance, moving expenses, self employment tax)
8.Sources of applicable deductions (e.g., itemized, standard)
9. Qualiications of dependency
10. Sources of applicable credits (e.g., education, foreign tax, retirement, energy, dependent care)
11. Sources of tax payments and refundable credits (e.g., withholding, estimated payments, earned income tax credit)
12. Previous IRS correspondence with taxpayer
13. Additional required returns filed and taxes paid (e.g., employment, gifts, and information returns)
14. Special filing requirements (e.g., foreign income, presidentially declared disaster areas, Form 1040-NR)
15. Foreign Account and Asset Reporting ( FBAR Form 8938)
16. Minor children's unearned income (Kiddie tax)
17. ACA Requirements ( e.g., health insurance coverage, total household income, advanced credit exemptions
17. Appendix
Section 1.1 Study Guide
Section 2: Income and Assets
1.Taxability of wages, salaries and other earnings (e.g., earned income, statutory employee)
2. Interest Income (e.g., taxable and non-taxable)
3. Dividends and other distributions from mutual funds, corporations, and other entities (e.g., qualified dividends)
4. Rental income and expenses (e.g., vacation homes, not-for-profit rentals, calculation of depreciation)
5. Gambling income and allowable deductions (e.g., W-2G, documentation)
6. Tax treatment of forgiveness of debt (e.g., 1099C, foreclosures)
7. Tax treatment of a U.S. citizen/resident with foreign income
8. Other Income income, taxable recoveries)
9. Constructive receipt of income (e.g., cash vs. accrual)
10. Constructive dividends (e.g., payments of personal expenses)
Section 2
Section 2
2.2 Study Guide
2.3 Property: Real and Personal
Section 2
5. Self- Employment Insurance
Section 3: Deductions and Credits
1. Medical and dental expenses
2. Various taxes (e.g., state income, personal property, real estate)
3. Interest expense (e.g., mortgage interest, investment interest, tracing rules, points)4. Charitable contributions (e.g., cash, non-cash, 50% vs. 30%, documentation required)
5. Nonbusiness casualty and theft losses6. Miscellaneous itemized deductions
7. Employee Travel, Transportation and Entertainment Expenses
8. Other employee expenses (e.g., education, reimbursement, eligibility, home office)
9. AGI limitations
10. Allowed itemized deductions for Form 1040-NR
Section 3
3.2 Credits
1. Child and dependent care credit
2. Child tax credits
3. Education credits
4. Foreign tax credit
5. Earned income tax credit
6. Retirement contribution credit
7. Adoption credits
8. Other credits
Section 3
Section 4: Taxation and Advice
1. Alternative minimum tax
2. Credit for prior year minimum tax
3. Penalties and exceptions on premature distributions from qualified retirement plans and IRAs Wednesday
4. Household employees
5. Underpayment penalties and interest
6. Conditions for filing a claim for refund (e.g., amended returns)
7. Self employment tax
8. Excess social security withholding
9. Tax provisions for members of the clergy
4.2 Advising the Individual Taxpayer
1. Reporting obligations for individuals
2. Property sales (e.g., homes, stock, businesses)
3. Education planning (e.g., lifetime learning credit, IRC section 529 plans)
4. Estate planning (e.g., gift versus inheritance, trusts, family partnerships, charitable giving, LTC, life insurance)
5. Retirement planning (e.g., annuities, IRAs, employer plans, early retirement rules, required minimum distribution, beneficiary ownership)
6. Marriage and divorce (e.g., divorce settlement, common-law, community property)
7. Items that will affect future returns (e.g., carryovers, net operating loss, Schedule D, Form 8801)
8. Injured spouse9. Innocent spouse
10. Estimated tax
11. Adjustments, deductions, and credits for tax planning
12. Use of capital gain rates versus ordinary income rates (e.g., character of transaction)
Section 5: Specialized Returns for Individuals
5.1 Estate Tax
1. Gross estate
2. Taxable estate: calculations and payments
3. Unified credit
4. Jointly-held property
5. Life insurance and taxable estate
6. Marital deduction and other marital issues
7. IRAs and retirement plans
8. Filing requirements
5.1 Part Quiz
1. Gift- Splitting
2. Annual per donee exclusion
3. Unified credit
4. Effect on Estate Tax ( e.g., Generation Skipping Transfer Tax)
5. Filing Requirements
1. Filing Requirements and Due Dates
2. Covered Accounts
3. Potential Penalties
4. Distinctions Between FBAR and Form 8938