Tax Mastery Live Duo: The Ultimate Federal Update
Course Objectives
Upon completion of this course, students will be able to:
Identify the different filing statuses available to taxpayers and determine which filing status is most beneficial for each taxpayer
Identify what types of income are considered earned income and unearned income, and understand the tax implications of each type of income
Calculate the standard deduction and itemized deductions for taxpayers
Determine which tax credits are available to taxpayers and determine whether taxpayers meet the eligibility requirements for each tax credit
Prepare federal tax returns for taxpayers with different filing statuses and different types of income and deductions
Filing Statuses
Your filing status determines your standard deduction, tax rates, and eligibility for certain tax credits and deductions. The five filing statuses are:
Single
Married filing jointly
Married filing separately
Head of household
Qualifying widow(er)
To determine your filing status, you must consider your marital status, residency status, and dependency status on December 31st of the tax year. For more information on filing statuses, see IRS Publication 501, Exemptions, Standard Deduction, and Itemized Deductions, pages 14-17.
Earned Income
Earned income is any income you receive from working, such as wages, salaries, tips, commissions, and bonuses. It also includes income from self-employment, such as net income from a sole proprietorship or partnership. Earned income is essential for tax purposes because it determines eligibility for certain tax credits and deductions, such as the Earned Income Tax Credit (EITC) and the Child Tax Credit. For more information on earned income, see IRS Publication 501, Exemptions, Standard Deduction, and Itemized Deductions, pages 23-24.
Unearned Income
Unearned income is any income you receive that you do not have to work for, such as dividends, interest, rental income, and alimony. It also includes income from Social Security benefits, unemployment compensation, and pensions. Unearned income is taxed differently than earned income. For more information on unearned income, see IRS Publication 525, Taxable and Nontaxable Income, pages 2-10.
This course will detail all aspects of filing statuses, earned income, and unearned income. You will learn how to determine your clients' filing statuses, calculate their earned and unearned income, and identify the tax credits and deductions they are eligible for.
IRS Publications
IRS Publication 501, Exemptions, Standard Deduction, and Itemized Deductions
IRS Publication 525, Taxable and Nontaxable Income
$299.99 USD