Fundamentals of the 1040 for Junior Staff

Overview

This course provides junior tax professionals with a strong foundation in individual tax preparation for the 2025 tax year, focusing on Form 1040 and key schedules. Participants will gain step-by-step guidance on filing requirements, income reporting, deductions, tax credits, and compliance standards under Circular 230.

Emphasizing preparer due diligence and ethical responsibilities, the course also covers recent tax law updates, including potential changes from the expiration of TCJA provisions. It introduces essential forms such as Schedule C, Schedule E, Form 7203, and Form 7217 to ensure participants understand business income, rental income, and shareholder reporting. By the end, junior staff will be equipped to prepare individual tax returns accurately and maintain IRS compliance.

*Please Note:  If you need credit reported to the IRS for this IRS approved program, please download the IRS CE request form on the Course Materials Tab and submit to kori.herrera@acpen.com

Highlights

• Form 1040 essentials: filing requirements, due dates, and key schedules
• Filing status, dependency rules, and taxable income sources (wages, business income, rental income, and investments)
• Adjustments to income, deductions, and tax credits (standard vs. itemized deductions, Child Tax Credit, Earned Income Tax Credit, and Education Credits)
• Self-employment and business income taxation (Schedule C, self-employment tax, business deductions)
• Rental income and pass-through entity reporting (Schedule E, Schedule K-1, shareholder stock and debt basis on Form 7203)
• Preparer due diligence, Circular 230 compliance, and taxpayer rights
• IRS cybersecurity considerations and best practices for taxpayer data security
• Legislative updates for 2024 and potential changes in 2025

Prerequisites

Basic knowledge of tax preparation concepts

Designed For

Jr staff, entry-level tax preparers, and early-career tax professionals working on individual tax returns

Objectives

• Identify preparer responsibilities, including due diligence and ethical obligations
• Determine the correct filing status and eligibility of dependents based on tax law
• Recognize and classify taxable income sources, including wages, self-employment, rental income, and investment income
• Differentiate between standard and itemized deductions and apply the correct deduction to a taxpayer’s return
• Calculate refundable and nonrefundable tax credits, including the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC)
• Analyze Schedule C to determine business income, deductions, and self-employment tax implications
• Evaluate rental income and pass-through entity reporting on Schedule E and Schedule K-1
• Interpret Form 7203 to determine shareholder stock and debt basis for S corporations
• Apply Form 7217 for capital construction funds and deferred tax liability reporting
• Implement best practices for taxpayer data security and confidentiality

Preparation

None