Part 1 - Individuals - Preliminary Work And Taxpayer Data

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


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