1040 Preparation and Planning 8: Adjustments to Gross Income (2025)
Author: Barbara Weltman, Greg White
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC |
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2027 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
This two-hour CPE course, the eighth in the series, examines adjustments to gross income, including deductions that don’t require itemizing; HSAs; IRA deductions; tax treatment of alimony, child support, and property settlements; and how to arrive at adjusted gross income.
Tax developments reflected in this course include the extensive changes effective for 2024 that were created by the Consolidated Appropriations Act, 2023 (including SECURE Act 2.0), the Inflation Reduction Act of 2022, and other tax legislation, IRS pronouncements, and court decisions, are extensive. They impact 2024 tax year returns that will be filed during the 2025 filing season and refund opportunities for earlier years; as well as point the way to strategic planning in 2025 and beyond. This course brings the tax preparer "up-to-speed" in preparing 2024 tax returns for the 2025 filing season.
Publication Date: September 2024
Topics Covered
- Adjusted Gross Income Section
- Items Deductible from Gross Income
- Educator Expenses
- Expenses of Reservists, Performing Artists, and Fee-Basis Government Officials
- Health Savings Accounts
- Moving Expense Deduction
- Deductible Part of Self-Employment Tax
- Self-Employed SEP, SIMPLE, and Qualified Plans
- 401(k)s
- Self-Employed Health Insurance Deduction
- Penalty on Early Withdrawal of Savings
- Alimony
- IRA Deduction
- Roth IRAs
- Interest on Student Loans
- Other Deductions
Learning Objectives
- List deductions that can be claimed without itemizing
- Determine eligibility for a health savings account
- Identify how to figure IRA deductions
- Describe the difference in tax treatment between alimony for pre-2019 and post 2018 divorces, as well as child support and property settlements
- Explain how to calculate to arrive at adjusted gross income
- Identify the deduction that is subtracted in the adjusted gross income section
- Identify up to what amount teachers and other educators can deduct of their out-of-pocket costs for classroom materials as an above-the-line deduction
- Identify the schedule of Form 1040 and 1040-SR used to list deductions that can be claimed without itemizing
Level
Intermediate
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
Understanding of the form 1040
Advance Preparation
None
