1040 Preparation and Planning 11: Tax Credits (2024)

Author: Barbara Weltman, Sidney Kess, Greg White

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

This two-hour CPE course, which is the 11th in the 1040 Preparation and Planning series, covers types of tax credits, including refundable and nonrefundable tax credits; figuring each type of personal tax credit; which credits are reported directly on the return and which must first be reported on Schedule 3 of Form 1040 and 1040-SR; and business tax credits. Tax developments reflected in this course, including the Consolidated Appropriations Act, 2023 (including SECURE Act 2.0), the Inflation Reduction Act of 2022, and other tax legislation, IRS pronouncements, and court decision, are extensive. They impact 2023 tax year returns that will be filed during the 2024 filing season and refund opportunities for earlier 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

• Overview of Tax Credits
• Premium Tax Credit
• Earned Income Credit
• Income Limits
• Child and Dependent Care Expenses
• Credit for Child and Dependent Care Expenses
• Child Tax Credit
• American Opportunity Credit and Lifetime Learning Credit
• Adoption Credit
• Retirement Savings Contributions Credit (Saver's Credit)
• Energy Credits for Homeowners Act 13301
• Older Energy Efficient Residential Improvements
• Qualifying Heat Pumps and Wood Stoves
• New Credit — Overall Ceilings
• New Credit — Subceilings
• Is the Credit Limited to Your Principal Residence?
• Energy Efficiency Standards Change in 2023
• Solar Panels — An Oasis of Simplicity
• Other Residential Credit (Solar) — More Complicated
• New Clean Vehicle Credit (EVs)
• Clean Vehicle Rules May Change
• Used Car EV Credit
• Commercial EVs
• Mortgage Interest Credit
• Minimum Tax Credit
• Credit for the Elderly or the Disabled
• Foreign Tax Credit
• General Business Credit
• Rehabilitation Credit
• Work Opportunity Credit
• Employer Credit for FICA on Tips
• Tax Credit for Increasing Research Activities
• Low-Income Housing Credit
• Disabled Access Credit
• Small Employer Pension Plan Startup Credit
• Auto-Enrollment Option in Retirement Plans Credit
• Business Energy Credits

Learning Objectives

• Distinguish between refundable and nonrefundable credits
• Figure each type of personal tax credit
• Determine where credits are reported on the tax return
• Identify business tax credits and understand the limitations under the general business credit

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None