Federal Tax Law: Individual Tax Preparation

Categories: Federal Tax, IRS CE
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About Course

Federal Tax Law: Individual Tax Preparation is a 2-hour IRS continuing education course designed for tax preparers, Enrolled Agents, and accounting professionals who prepare Form 1040 returns. This self-study program covers filing status determination, dependency rules, income reporting, adjustments, tax credits, and common compliance issues affecting individual taxpayers. Participants will learn practical strategies for reducing errors, meeting due diligence requirements, and applying current federal tax law with confidence. Upon completion, students will be able to accurately prepare Form 1040 returns, identify common audit triggers, and apply key federal tax rules in real-world tax preparation scenarios.

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What Will You Learn?

  • Identify the five federal filing statuses and apply eligibility rules
  • Determine dependency eligibility using IRS qualification tests
  • Classify major categories of individual income
  • Apply above-the-line adjustments to calculate AGI
  • Calculate key individual tax credits and deductions
  • Reconcile Premium Tax Credit using Form 8962
  • Identify common Form 1040 compliance issues
  • Apply preparer due diligence standards

Course Content

Module 1 – Filing Status and Dependents
Learn how to determine the correct filing status and dependency eligibility under federal tax law. This module covers the five filing statuses, Head of Household requirements, Qualifying Child and Qualifying Relative tests, tie-breaker rules, Form 8332, and common dependency-related audit issues.

  • Filing Status and Dependents

Module 2 – Income Categories and Adjustments
Review the major categories of individual income and learn how each item is reported on Form 1040. Topics include wages, self-employment income, investment income, retirement distributions, Social Security benefits, statutory exclusions, and above-the-line adjustments used to calculate AGI.

Module 3 – Credits and Deductions
Examine the most important individual tax credits and deductions available to taxpayers. This module covers the Child Tax Credit, Additional Child Tax Credit, Earned Income Tax Credit, education credits, Premium Tax Credit reconciliation, standard deduction versus itemized deductions, and preparer due diligence requirements.

Module 4 – Common Errors and Compliance Issues
Understand the most common Form 1040 compliance problems and how to avoid them. Topics include IRS Automated Underreporter (AUR) notices, penalty calculations, preparer due diligence standards, identity verification issues, amended returns, and a structured pre-filing review process designed to reduce errors and compliance risk.

Final Assessment – Federal Tax Law: Individual Tax Preparation
This final assessment evaluates participant understanding of all course modules, including filing status determination, income categories, adjustments, credits, deductions, and common compliance risks. Successful completion requires a minimum passing score of 70%. Unlimited attempts are allowed.

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