1040 Preparation and Planning 1: Fundamentals (2024)

Author: Greg White, Barbara Weltman, Sidney Kess

Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2026 to receive credits

This two-hour course, the first in the 1040 Preparation and Planning series, provides an overview of Form 1040 and 1040-SR, including the different sections of the forms and major schedules. It also covers in general, gross income, exclusions, tax liability, tax credits, and tax payments. Tax developments reflected in this course, including the Consolidated Appropriations Act, 2023 (which includes SECURE Act 2.0), the Inflation Reduction Act of 2022, and other tax legislation, IRS pronouncements, and court decisions, are extensive. They impact 2023 tax year returns that will be filed during the 2024 filing season and refund opportunities for earlier, open years; as well as point the way to strategic planning in 2024 and beyond. This course brings the tax preparer "up-to-speed" in preparing 2023 tax returns for the 2024 filing season.

Publication Date: September 2023

Topics Covered

• Tax Returns for Individuals
• Purpose of the Income Tax Return
• Estimated Tax—Another Collection Method
• Purpose of the Income Tax Return - Payments on Account
• Major Schedules
• IRS Forms Supplementing the Return
• Who Must File a Return?
• Who Must File a Return: Dependents
• Single Dependents
• Getting Started on Preparing a Return - Recordkeeping Techniques, Assembling Information, and Forms and Schedules
• Gross Income
• Fundamental Tax Rules
• Exclusions
• Deductions from Income
• Itemized Deductions—2018-2025
• Exemptions
• Taxable Income
• Standard Deductions — Basic Amounts for 2023
• Tax Liability
• Tax Credits—Dollar-for-Dollar Reduction of Tax Liability
• Refundable Tax Credits
• Nonrefundable Tax Credits
• Tax Payments
• Paying Taxes
• Tax Refunds
• Filing Deadlines
• Third Party Designee
• E-Filing the Return
• Signature Requirements and Options
• Sending Paper Returns
• Filing Electronically
• Tax Accounting - Accounting Periods and Methods
• Taxable Year
• Methods of Accounting
• Cash Basis
• Use of Cash Method by Small Businesses
• Accrual Basis
• Other Accounting Methods
• Change in Accounting Methods
• Automatic Consent

Learning Objectives

• Describe the basic federal income tax structure
• Identify who is required to file a return
• Describe the basic parts of the income tax return
• Describe payment options for taxes owed
• Describe the concepts of tax year and accounting method

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None