1040 Preparation and Planning 4: Gross Income: Interest, Dividends, and Other Ordinary Income (2021)
Author: Sidney Kess, Barbara Weltman
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC |
This fourth course in the 1040 Preparation and Planning series covers gross income from interest, dividends, Social Security, alimony, unemployment benefits, cancellation of debt, and other income. A case study that walks you through calculating reportable income is included in this course.
Publication Date: November 2020
Designed For
CPAs, Tax Return Preparers, Enrolled Agents, Tax Attorneys, Tax Practitioners
Topics Covered
- Items Includible in Gross Income
- Introduction to Interest Income
- Timing of Interest Income
- Interest Income from REMICs and CMOs
- Refunds on Adjustable Rate Mortgages
- Imputed Interest Income from Below-Market Loans
- Interest Income from Foreign Financial Accounts
- Interest Paid by the U.S. Government
- Treasury Inflation - Indexed Debt Securities
- Interest Income on U.S. Government Savings Bonds
- College Savings Bonds
- Interest on State and Municipal Obligations
- Dividends
- Tax Rates on Qualified Dividends
- Reporting Dividends on the Tax Return
- Foreign Dividends
- Stock Dividends
- Stock Rights
- Constructive Dividends
- Liquidating Dividends
- Dividends on Insurance Policies
- Distributions from Savings Accounts
- Mutual Fund Dividends
- Real Estate Investment Trust (REIT) Dividends
- Tax Refunds, Credits, or Offsets of State and Local Income Taxes
- AMT and the Refund
- Alimony
- Child Support
- Property Settlements
- Unemployment Benefits
- Social Security Benefits
- Other income
- Cancellation of a Debt
- Hobby Income
- Taxable Distributions from Certain Tax-Advantaged Accounts
- Economic Impact Payments
- Calculations
Learning Objectives
- Correctly report interest income
- Identify qualified dividends
- Figure the includible portion of Social Security benefits
- Describe the taxation of alimony under pre-2019 divorces
- Describe the taxation of unemployment benefits
- Distinguish cancellation of debt income that is taxable from COD income that is excludable
- List "other income"
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
