Tax Preparation Fundamentals

About this course

Curriculum

1. 01

   Lesson 1: Tax System Overview, Filing Requirements, and Deadlines

   Learn how the U.S. federal individual income tax system works and how to determine whether a taxpayer is required to file a 2026 federal income tax return. This lesson introduces the tax preparation process, filing requirements, key income concepts, important filing and payment considerations, and situations in which a taxpayer may benefit from filing even when a return is not otherwise required.

   12m
2. 02

   Lesson 2: Determining Taxpayer Filing Status

   Learn how to determine the correct federal income tax filing status for an individual taxpayer. This lesson covers Single, Married Filing Jointly, Married Filing Separately, Head of Household, and Qualifying Surviving Spouse, including marital-status rules, special provisions for certain married taxpayers living apart, dependent-parent rules, and practical filing-status scenarios.

   12m
3. 03

   Lesson 3: Identifying Dependents: Qualifying Child and Qualifying Relative

   Learn how to determine whether an individual may be claimed as a dependent for federal income tax purposes. This lesson explains the rules for qualifying children and qualifying relatives, including relationship, age, residency, support, gross income, joint return, citizenship, and multiple-claimant rules. Students will also learn how dependency determinations affect filing status and tax benefits.

   12m
4. 04

   Lesson 4: Compensation and Wage Income (Form W-2)

   Learn how employee compensation is reported for federal income tax purposes using Form W-2, Wage and Tax Statement. This lesson explains taxable wages, salaries, tips, bonuses, fringe benefits, federal income tax withholding, Social Security and Medicare wages, and the major boxes on Form W-2. Students also learn how to review a W-2 for accuracy and identify common reporting issues before preparing an individual income tax return.

   12m
5. 05

   Lesson 5: Interest, Dividends, and Unearned Income (Form 1099 Series)

   Learn how to identify and report common forms of unearned and investment income, including taxable and tax-exempt interest, ordinary and qualified dividends, capital gain distributions, original issue discount, and investment transactions reported on the Form 1099 series. This lesson explains Forms 1099-INT, 1099-DIV, 1099-OID, and 1099-B and teaches students how to review investment documents for accurate federal income tax reporting.

   12m
6. 06

   Lesson 6: Other Gross Income Sources and Exclusions

   Learn how to identify and report other common sources of gross income and recognize important exclusions from federal taxable income. This lesson covers unemployment compensation, gambling winnings, prizes and awards, cancellation of debt, alimony rules, jury duty pay, scholarships, life insurance proceeds, gifts and inheritances, disability payments, and other miscellaneous income that may require special tax treatment.

   12m
7. 07

   Lesson 7: Adjustments to Income (Schedule 1)

   Learn how adjustments to income reduce gross income to arrive at adjusted gross income, or AGI. This lesson explains common Schedule 1 adjustments, including educator expenses, health savings account deductions, the deductible portion of self-employment tax, self-employed retirement contributions, self-employed health insurance, penalties on early withdrawal of savings, traditional IRA deductions, student loan interest, and certain other adjustments. Students also learn why AGI is important when determining eligibility for deductions, credits, and other federal tax benefits.

   12m
8. 08

   Lesson 8: Standard Deduction vs. Itemized Deductions (Schedule A)

   Learn how to determine whether a taxpayer should claim the standard deduction or itemize deductions on Schedule A. This lesson covers the 2026 standard deduction amounts, additional deductions for age and blindness, medical and dental expenses, state and local taxes, mortgage interest, charitable contributions, casualty losses, and other itemized deductions. Students also learn how filing status, dependent status, and Married Filing Separately rules can affect the deduction available.

   12m
9. 09

   Lesson 9: Nonrefundable and Refundable Tax Credits

   Learn how federal tax credits reduce a taxpayer’s income tax liability and how refundable and nonrefundable credits differ. This lesson covers common individual tax credits, including the Child Tax Credit, Credit for Other Dependents, Earned Income Tax Credit, Child and Dependent Care Credit, education credits, Saver’s Credit, Premium Tax Credit, and certain energy-related credits. Students also learn how eligibility, income limits, filing status, dependency rules, and due diligence requirements affect credit claims.

   12m
10. 10

    Lesson 10: Tax Liability Computation, Payments, and Balance Due/Refund

    Learn how federal income tax liability is calculated after taxable income is determined and how withholding, estimated tax payments, refundable credits, and other payments affect the final amount due or refund. This lesson explains the 2026 federal tax rate structure, marginal tax rates, tax tables, additional taxes, total tax, payments, estimated tax, underpayment considerations, balance due, refunds, and common preparer review procedures before filing Form 1040.

    12m
11. 11

    Lesson 11: Professional Ethics, Circular 230, and Preparer Due Diligence

    Learn the ethical and professional responsibilities of paid tax return preparers, including standards under Treasury Department Circular 230, IRS due diligence requirements, confidentiality obligations, competency expectations, preparer identification rules, and prohibited conduct. This lesson explains how preparers should handle incomplete or questionable information, conflicts of interest, client records, positions on tax returns, and situations that may expose the preparer to penalties or disciplinary action.

    12m
12. 12

    Lesson 12: Comprehensive Tax Return Case Study and Workflow Integration

    Apply the concepts from the entire Tax Preparation Fundamentals course by working through a comprehensive individual federal income tax return case study from client intake through final review. This lesson integrates filing status, dependents, wages, investment income, other income, adjustments, deductions, credits, tax liability, payments, due diligence, documentation, and preparer ethics into one complete tax preparation workflow. Students learn how to organize source documents, identify missing information, resolve inconsistencies, calculate the return, review the final result, and prepare the return for client approval and filing.

    12m