Personal Income Tax Fundamentals

About this course

Who this course is for

What you'll learn

• How the federal individual income tax system works
• When an individual may be required to file a federal income tax return
• How filing status and dependents affect a tax return
• The difference between taxable and nontaxable income
• How to recognize and understand common tax documents
• How adjustments, deductions, and tax credits affect taxable income and tax liability
• How withholding and estimated tax payments affect refunds and balances due
• How to review Form 1040 and recognize when professional tax assistance may be appropriate
• Course objective: Help individuals understand the basic structure of the federal income tax system, recognize the information reported on their tax returns, understand how federal income tax is calculated, and identify when assistance from a qualified tax professional may be appropriate.
• Explain the basic purpose and structure of the federal individual income tax system.
• Determine whether an individual may have a federal income tax return filing requirement.
• Recognize the five federal filing statuses and their general requirements.
• Understand the basic rules involving dependents and household tax situations.
• Distinguish common forms of taxable and nontaxable income.
• Recognize common tax documents and understand the information they report.
• Explain how adjustments, deductions, credits, withholding, and estimated payments affect a tax return.
• Identify the major sections of Form 1040 and perform a basic review of a completed return.
• Understand the general procedures for filing, receiving a refund, paying a balance, and correcting a return.
• Maintain appropriate personal tax records and recognize when professional assistance may be needed.

Course details

Level

beginner

What's included

• 12 lessons
• Progress tracking
• Certificate of completion

Curriculum

1. 01

   Lesson 1: How the Federal Individual Income Tax System Works

   Learn how the federal individual income tax system works from the time income is earned through the filing of a tax return. This lesson explains the basic tax-calculation process, the pay-as-you-go system, progressive tax rates, refunds, balances due, and the taxpayer’s responsibility for reporting accurate information.

   12m
2. 02

   Lesson 2: Filing Requirements, Tax Years, and Filing Status

   Learn how tax years, federal filing requirements, and filing status affect an individual income tax return. This lesson explains the primary factors used to determine whether a person must file, why filing may still be beneficial when it is not required, and the basic qualifications for each of the five federal filing statuses.

   12m
3. 03

   Lesson 3: Dependents and Household Tax Situations

   Learn how federal tax rules determine whether a person may be claimed as a dependent. This lesson explains qualifying children, qualifying relatives, residency and support requirements, shared-custody situations, and the difference between claiming a dependent and qualifying for related tax benefits.

   12m
4. 04

   Lesson 4: Taxable Income, Nontaxable Income, and Other Income

   Learn how to identify taxable income, nontaxable income, and other income that may need to be reported on a federal tax return. This lesson explains common income sources, payments that are generally excluded from income, situations requiring special treatment, and why income may still be reportable even when no tax form is received.

   12m
5. 05

   Lesson 5: Understanding Common Tax Forms and Income Documents

   Learn how to identify, organize, and review the most common tax documents received by individuals. This lesson explains Forms W-2, 1099, 1098, 1095-A, Schedule K-1, and other income statements, including what the forms report, why amounts may differ, and what to do when a document is missing or incorrect.

   12m
6. 06

   Lesson 6: Self-Employment, Gig Work, Investment, and Retirement Income

   Learn how income from self-employment, gig work, investments, and retirement accounts is reported and taxed. This lesson explains gross business income, deductible expenses, self-employment tax, investment basis, capital gains and losses, retirement distributions, rollovers, and the importance of year-round records and tax payments.

   12m
7. 07

   Lesson 7: Adjustments to Income and Adjusted Gross Income

   Learn how adjustments to income reduce total income to arrive at adjusted gross income, or AGI. This lesson explains common adjustments, including certain retirement contributions, student loan interest, health savings account contributions, self-employed health insurance, and the deductible portion of self-employment tax, while distinguishing AGI from taxable income and modified AGI.

   12m
8. 08

   Lesson 8: Standard Deductions and Itemized Deductions

   Learn how the standard deduction and itemized deductions reduce income before federal income tax is calculated. This lesson explains who may use the standard deduction, when itemizing may be beneficial, the major Schedule A deduction categories, documentation requirements, and deductions that remain available regardless of which method is selected.

   12m
9. 09

   Lesson 9: Tax Credits, Withholding, and Estimated Tax Payments

   Learn how tax credits, federal withholding, and estimated tax payments affect the final result of an individual income tax return. This lesson explains refundable and nonrefundable credits, common individual credits, Form W-4 withholding, estimated payment requirements, underpayment penalties, and how taxes and payments combine to produce a refund or balance due.

   12m
10. 10

    Lesson 10: Understanding Form 1040 and Reviewing Your Tax Return

    Learn how Form 1040 organizes personal information, income, deductions, tax, credits, payments, refunds, and balances due. This lesson provides a practical process for reviewing a completed federal return, checking supporting schedules, confirming bank and identification information, and understanding the taxpayer’s responsibility before signing and filing.

    12m
11. 11

    Lesson 11: Filing, Refunds, Balances Due, and Amended Returns

    Learn how to file a federal income tax return, request an extension, track a refund, pay a balance, and correct a previously filed return. This lesson explains electronic and paper filing, IRS acceptance, direct deposit, refund offsets, payment arrangements, penalties and interest, and when Form 1040-X should be used.

    12m
12. 12

    Lesson 12: Tax Records, IRS Communications, Year-Round Planning, and Professional Help

    Learn how to organize and retain important tax records, respond safely to IRS notices, protect personal tax information, plan for taxes throughout the year, and recognize when professional assistance may be appropriate. This lesson also explains how IRS transcripts and online account tools can help individuals manage their federal tax responsibilities.

    12m