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Wiley Tax Preparer: A Guide to Form 1040

Wiley Tax Preparer: A Guide to Form 1040

The Tax Institute at H&R Block

ISBN: 978-1-118-07262-2

Mar 2013

576 pages

Description

Whether you’re already a tax preparer or you’re looking to become one, you need a firm grasp of the tax concepts on which individual taxation is based. We created the Wiley Tax Preparer as a refresher for the experienced tax preparer, and as a readable guide for the less-experienced tax preparer.

This timely guide is an essential tax resource providing you with useful information on tax principles and filing requirements that a preparer must know to complete a 1040 series return and associated schedules. You’ll refer to it time and again, for information about:

Practices and Procedures

  • Penalties to be assessed by the IRS against a preparer for disregard of the rules and regulations
  • Furnishing a copy of a return to a taxpayer
  • Safeguarding taxpayer information

Treatment of Income and Assets

  • Taxability of wages, salaries, tips, and other earnings
  • Reporting requirements of Social Security benefits
  • Determination of basis of assets

Deductions and Credits

  • Medical and dental expenses
  • Types of interest and tax payments
  • Child and dependent care credit

Other Taxes

  • Alternative Minimum Tax
  • Self-Employment Tax

Preliminary Work and Collection of Taxpayer Data

  • Collecting a taxpayer’s filing information and determining their status
  • Determine filing requirements, including extensions and amended returns
  • Personal exemptions and dependents

Completion of the Filing Process

  • Check return for completeness and accuracy
  • Tax withholding, payment and refund options, and estimated tax payments
  • Explaining and reviewing the tax return

Ethics and Circular 230

  • Preparer’s due diligence for accuracy of representations made to clients and the IRS
  • Sanctions that may be imposed under Circular 230
  • Rules governing authority to practice before the IRS

If you’re looking for a practical guide to the principles behind Form 1040, look no further. The Wiley Tax Preparer is the most accessible guide to understanding how complex tax laws affect individual taxpayers.

Part 1 The Income Tax Return 1

Chapter 1 Filing Information 3

Chapter 2 Filing Status 13

Chapter 3 Personal and Dependency Exemptions 25

Part 2 Income and Assets 41

Chapter 4 Wages, Salaries, and Other Earnings 43

Chapter 5 Interest Income 57

Chapter 6 Dividends and Other Corporate Distributions 69

Chapter 7 Rental Income and Expenses 77

Chapter 8 Retirement Plans, Pensions, and Annuities 93

Chapter 9 Social Security and Equivalent Railroad Retirement Benefits 109

Chapter 10 Other Types of Income 119

Chapter 11 Self-Employment Activities 133

Chapter 12 Basis of Property 153

Chapter 13 Sale of Property 163

Chapter 14 Sale of Home 181

Chapter 15 IRA and HSA Contributions 191

Chapter 16 Education-Related Adjustments 201

Chapter 17 Business-Related Adjustments 209

Chapter 18 Alimony 221

Part 3 Deductions and Credits 229

Chapter 19 Standard and Itemized Deductions 231

Chapter 20 Medical and Dental Expenses 237

Chapter 21 Tax Payments 247

Chapter 22 Interest Payments 255

Chapter 23 Charitable Contributions 267

Chapter 24 Nonbusiness Casualty and Theft Losses 281

Chapter 25 Miscellaneous Itemized Deductions 293

Chapter 26 Employee Business Expenses 303

Chapter 27 Earned Income Credit 321

Chapter 28 Child and Dependent Care Credit 339

Chapter 29 Child Tax Credit 347

Chapter 30 Education Credits 353

Chapter 31 Other Tax Credits 361

Part 4 Other Taxes 375

Chapter 32 Figuring the Regular Tax 377

Chapter 33 The Alternative Minimum Tax 387

Chapter 34 The Kiddie Tax 397

Chapter 35 Other Taxes 407

Part 5 Completion of the Filing Process 421

Chapter 36 Tax Payments and Refund Options 423

Chapter 37 Completing and Filing the Return 437

Part 6 Practices and Procedures 447

Chapter 38 Preparer Responsibilities and Penalties 449

Part 7 Ethics and Circular 230 461

Chapter 39 Rules Governing Authority to Practice before the IRS 463

Chapter 40 Duties and Restrictions Relating to Practice before the IRS 471

Chapter 41 Sanctions for Violating Circular 230 485

Index