Whether youre already a tax preparer or youre looking to become one, you need a firm grasp of the tax concepts on which individual taxation is based. We created the Wiley Tax Preparer as a refresher for the experienced tax preparer, and as a readable guide for the less-experienced tax preparer.
This timely guide is an essential tax resource providing you with useful information on tax principles and filing requirements that a preparer must know to complete a 1040 series return and associated schedules. Youll refer to it time and again, for information about:
Practices and Procedures
Penalties to be assessed by the IRS against a preparer for disregard of the rules and regulationsFurnishing a copy of a return to a taxpayerSafeguarding taxpayer information
Treatment of Income and Assets
Taxability of wages, salaries, tips, and other earningsReporting requirements of Social Security benefitsDetermination of basis of assets
Deductions and Credits
Medical and dental expensesTypes of interest and tax paymentsChild and dependent care credit
Other Taxes
Alternative Minimum TaxSelf-Employment Tax
Preliminary Work and Collection of Taxpayer Data
Collecting a taxpayers filing information and determining their statusDetermine filing requirements, including extensions and amended returnsPersonal exemptions and dependents
Completion of the Filing Process
Check return for completeness and accuracyTax withholding, payment and refund options, and estimated tax paymentsExplaining and reviewing the tax return
Ethics and Circular 230
Preparers due diligence for accuracy of representations made to clients and the IRSSanctions that may be imposed under Circular 230Rules governing authority to practice before the IRS
If youre looking for a practical guide to the principles behind Form 1040, look no further. The Wiley Tax Preparer is the most accessible guide to understanding how complex tax laws affect individual taxpayers.
Part 1 The Income Tax Return 1
Chapter 1 Filing Information 3
Chapter 2 Filing Status 13
Chapter 3 Personal and Dependency Exemptions 25
Part 2 Income and Assets 41
Chapter 4 Wages, Salaries, and Other Earnings 43
Chapter 5 Interest Income 57
Chapter 6 Dividends and Other Corporate Distributions 69
Chapter 7 Rental Income and Expenses 77
Chapter 8 Retirement Plans, Pensions, and Annuities 93
Chapter 9 Social Security and Equivalent Railroad Retirement Benefits 109
Chapter 10 Other Types of Income 119
Chapter 11 Self-Employment Activities 133
Chapter 12 Basis of Property 155
Chapter 13 Sale of Property 165
Chapter 14 Sale of Home 183
Chapter 15 IRA and HSA Contributions 193
Chapter 16 Education-Related Adjustments 203
Chapter 17 Business-Related Adjustments 211
Chapter 18 Alimony 223
Part 3 Deductions and Credits 231
Chapter 19 Standard and Itemized Deductions 233
Chapter 20 Medical and Dental Expenses 239
Chapter 21 Tax Payments 249
Chapter 22 Interest Payments 257
Chapter 23 Charitable Contributions 269
Chapter 24 Nonbusiness Casualty and Theft Losses 283
Chapter 25 Miscellaneous Itemized Deductions 295
Chapter 26 Employee Business Expenses 305
Chapter 27 Earned Income Credit 323
Chapter 28 Child and Dependent Care Credit 341
Chapter 29 Child Tax Credit 349
Chapter 30 Education Credits 355
Chapter 31 Other Tax Credits 363
Part 4 Other Taxes 377
Chapter 32 Figuring the Regular Tax 379
Chapter 33 The Alternative Minimum Tax 389
Chapter 34 The Kiddie Tax 399
Chapter 35 Other Taxes 409
Part 5 Completion of the Filing Process 423
Chapter 36 Tax Payments and Refund Options 425
Chapter 37 Completing and Filing the Return 439
Part 6 Practices and Procedures 449
Chapter 38 Preparer Responsibilities and Penalties 451
Part 7 Ethics and Circular 230 463
Chapter 39 Rules Governing Authority to Practice before the IRS 465
Chapter 40 Duties and Restrictions Relating to Practice before the IRS 471
Chapter 41 Sanctions for Violating Circular 230 483
Answers to Review Questions 493
Appendix: IRS Resources 537
Index 539
