Every tax return includes information about the taxpayer, including biographical data, filing status and sources of deductions. This section of the exam covers the initial work and information gathering required for preparing individual tax returns. Topics include:

  • Use of prior years' returns for comparison, accuracy and carryovers for current year's return
  • Taxpayer data – date of birth, marital status and any dependents
  • Taxpayer citizenship and/or residency status, and Special requirements for nonresident aliens (Form 1040NR)
  • Taxpayer filing status – married filing jointly, married filling single, head or household, and widow
  • Sources of taxable and non-taxable income – business, dividends, interest, wages, rental, etc.
  • Sources of gross income adjustments – alimony, health insurance, health savings accounts, moving expenses, retirement plans, self employment tax, etc
  • Sources of credits – child care, education, energy, retirement, etc
  • Sources of deductions – itemized, standard
  • Sources of tax payments and refundable credits (earned income tax credit, estimated payments, withholding, etc.)
  • Previous IRS correspondence with taxpayer
  • Additional required returns filed and taxes paid – estimated, gifts, information returns
  • Special filing requirements – foreign income, disaster areas
  • Foreign report and asset reporting
  • Exemptions, including dependents
  • Dates for tax returns and extensions
  • Minor children's unearned income (Kiddy Tax)


Income And Assets

Related Articles
  1. Taxes

    What's IRS Form 1040 For?

    Most U.S. taxpayers will be familiar with the 1040. By the end of filling it out, you'll know how much tax you owe, or what your refund is.
  2. Taxes

    20 Tax Changes You Need To Know About

    Don't miss out on the tax changes. Here's a list that you need to know about.
  3. Taxes

    How Obamacare Is Raising Your Taxes

    There are literally dozens of new, amended or broadened tax provisions under the Obamacare legislation. Find out how your taxes will be affected in the years to come.
  4. Taxes

    Tax Credits And Deductions For Parents

    Your children can help you save on your taxes with these credits and deductions.
  5. Financial Advisor

    Tax Time is Coming; Don't Be Caught Off Guard

    It's time to think about tax returns again. The good news is that the regulations in 2016 have not changed dramatically from last year.
  6. Taxes

    Income Tax Brackets for 2015-2016

    Learn about the 2015-2016 tax brackets, how to calculate your marginal tax rate, the five types of filing status and how to qualify for them.
  7. Taxes

    Should Married Taxpayers File Together?

    Married couples that file a joint tax return can enjoy several credits and benefits that aren’t available when filing separately.
  8. Taxes

    5 Groups That Don't Pay Taxes

    Now that you've paid your share, find out who didn't have to pay taxes this year.
  9. Taxes

    How to File Your Child's First Income Tax Return

    Use this quick parental guide to help your child learn the tax filing process and establish good habits.
Frequently Asked Questions
  1. What are the Differences Among a Real Estate Agent, a broker and a Realtor?

    Learn how agents, realtors, and brokers are often considered the same, but in reality, these real estate positions have different ...
  2. What is the difference between amortization and depreciation?

    Because very few assets last forever, one of the main principles of accrual accounting requires that an asset's cost be proportionally ...
  3. Which is better, a fixed or variable rate loan?

    A variable interest rate loan is a loan in which the interest rate charged on the outstanding balance varies as market interest ...
  4. What is the 1003 mortgage application form?

    Learn about the 1003 mortgage application form, what information it requires and why this form is the industry standard for ...
Trading Center