This course provides a general overview of the key issues facing families, focusing on how federal taxation affects their current economic situation and their future plans. A wide range of topics include marital tax implications, children, education, retirement, estate planning and more. This course is designed to cover the most important topics that will have a direct impact on the financial planning for a family, today and tomorrow. The emphasis is on providing the tax practitioner with key tax solutions to help alleviate the economic concerns of most families.
Delivery Method: Online Self-Study
Advanced Preparation: None
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Field of Study:
Passing Score: 70%
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1. Determine how filing status affects taxpayers' filing requirements, standard deductions, and correct tax by:
a. Specifying divorce tax implications and the requirements and effects of filing as married or unmarried;
b. Identifying the requirements of filing a joint return and how to avoid being penalized;
c. Recognizing the key elements of filing separate returns including what items to report and whether or not married taxpayers should file separate returns; and
d. Identifying the requirements for filing as head of household and the tax advantages and disadvantages of this filing status.
2. Select the number of exemptions a client has and state the impact said exemptions will have by:
a. Recognizing the phaseout of exemptions showing its tax impact on taxpayers, identifying when exemptions can be taken for spouses, and specifying reporting requirements for dependent exemptions;
b. Citing the requirements for pre-2005 dependency particularly relationship, married person, citizen or resident, and income;
c. Identifying the former regular and special method for determining support noting complications from back child support and multiple support agreements;
d. Determining the current "qualified child" standard using residency, relationship, age, and joint return prohibition; and
e. Specifying the requirements to treat a child as a qualifying child of a non-custodial parent.
3. Determine the differences between deductible and nondeductible divorce expenditures, identify which spouse is subject to tax imposed upon withheld wages, and specify the effects of making separate estimated tax payments or joint declarations of estimated tax.
4. Recognize the special rules that apply to community property states and identify whether clients are affected by these rules by:
a. Determining what constitutes community property noting community property states and the effects of conversion and commingling of property including how to avoid such issues;
b. Identifying community income earned by married couples by:
i. Specifying reporting guidelines, identifying how to separating income earned and received into community property and separate property and recognizing what income and property belongs to which spouse when they have different residency statuses;
ii. Identifying requirements for the special community income allocation rules of Section 66(a) and determining a community property termination and the treatment of alimony payments; and
iii. Recognizing importance of statements and records to provide estimates of a former spouse's income and identifying four conditions for tax relief.
5. Determine the effect of living together on filing statuses and dependency noting differences between the married tax rate and other tax rates, identify the tax consequences of having a living together contract noting tax traps, and specify the results of Marvin v. Marvin.
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CPA: Suitable for all CPAs
IRS: Enrolled Agents Program Number 263UK-T-00090-14-S