PWX1121: 2022 Annual Tax Season Update Study Guide
Course material is the text “2022 Annual Tax Season Update .”
Chapter 1 – Recent Updates
When you have completed the chapter 1 text, you should be able to:
- Identify the inflation adjustments to various federal limits;
- Recognize the optional standard mileage rates; and
- Apply the required minimum distribution rules applicable to traditional IRAs and retirement plans
Chapter 2 – New Law & Tax Extenders
When you have completed the chapter 2 text, you should be able to:
- Describe the health insurance premium tax credit increase brought about by ARPA;
- Recognize the rules for repayment of COVID-19 related distributions from retirement plans;
- Identify the rules governing nonitemizers’ permitted adjustment for charitable contributions;
- Recognize the income tax rules applicable to the Recovery Rebate Credit; and
- Describe the current status of tax extenders.
Chapter 3 – Individual Income Components
When you have completed the chapter 3 text, you should be able to:
- Identify the items included in a taxpayer’s taxable earnings;
- Determine the tax treatment of foreign accounts and trusts;
- Apply the rules governing contributions to and distributions from IRAs;
- Understand the tax treatment of retirement income;
- Describe the reporting and taxability of unemployment compensation; and
- Apply the rules governing the tax treatment of alimony under post-2018 divorce agreements.
Chapter 4 – Proprietorship Income
When you have completed the chapter 4 text, you should be able to:
- Recognize the items included in self-employment income and expenses;
- Distinguish between a hobby and a business for tax purposes;
- Calculate the tax deduction for business use of a home; and
- Identify the recordkeeping requirements to substantiate Schedule C entries.
Chapter 5 – Individual Deductions & Credits
When you have completed the chapter 5 text, you should be able to:
- Determine the eligibility for, and amount of, standard deductions;
- Identify the limitations applicable to Schedule A itemized deductions; and
- Recognize the eligibility requirements for and limits applicable to the common tax credits.
Chapter 6 – General Income Tax Review I
When you have completed the chapter 6 text, you should be able to:
- Recognize the tax treatment of virtual currency;
- Determine the applicable alternative minimum taxable income exemption;
- Calculate the qualified business income deduction available to pass-through entities;
- Apply the rules for taxing the unearned income of dependent children; and
- Identify the broadened § 529 qualified education expenses resulting from the passage of the Tax Cuts and Jobs Act and the SECURE Act.
Chapter 7 – General Income Tax Review II
When you have completed the chapter 7 text, you should be able to:
- Recognize the expanded exclusion from income of student loan indebtedness authorized under the American Rescue Plan Act (ARPA);
- Identify the tax treatment given to Achieving a Better Life Experience Act (ABLE) accounts;
- Determine the modification of net operating losses imposed under the CARES Act;
- Identify the tax treatment of employee fringe benefits;
- Describe the rules governing a taxpayer’s tax withholding and estimated tax payments; and
- Recognize the options available to a taxpayer for paying any tax due or receiving a tax refund.
Chapter 8 – Preparer Practices, Procedures & Responsibility
When you have completed the chapter 8 text, you should be able to:
- Identify the red flags indicating possible tax-related identity theft and suggested assistance to its victims;
- Understand the laws and regulations requiring privacy and security of taxpayer data and the best practices tax preparers may implement to help assure it;
- Describe the purpose of individual taxpayer identification numbers, their effect on tax credits and how to renew them;
- Identify the due diligence requirements imposed on tax return preparers with respect to claiming head of household filing status, EITC, CTC and AOTC; and
- Understand the e-file requirements.