PWX1121: 2022 Annual Tax Season Update Study Guide

Course material is the text “2022 Annual Tax Season Update .”

 

Chapter 1 – Recent Updates

Learning objectives

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

Learning objectives

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

Learning objectives

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

Learning objectives

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

Learning objectives

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

Learning objectives

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

Learning objectives

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

Learning objectives

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.