Module XI of the 1040 Exam Prep e-Books Series summarizes the several topics included in the RTRP competency examination outline related to ethics and tax preparers practice obligations before the Internal Revenue Service. The main rules set in the sub-parts A, B, and C are examined.This module also includes the basic concepts of the alternative minimum tax.
Module X of the 1040 Exam Prep e-Books Series covers the principal aspects of the income tax regulation for self-employed taxpayers. Most items of income and expenses of a small business, declared in Schedule C, are examined in this module.
Module VIII of the 1040 Exam Prep e-Books Series covers the rules for the treatment of capital gains and losses for individual taxpayers. Individuals and small business income tax return are the focus of the Registered Tax Return Preparer competency examination.
Module VII of the 1040 Exam Prep e-Books Series analyses the tax credits for individual taxpayers. Tax credits are one of the components of the Form 1040 formula used to determine the tax due or the refund for a tax period. There are several types of credits that can directly reduce the tax liability. The tax liability minus tax credits equals payable taxes, or tax refund
Module VI of the 1040 Exam Prep e-Books Series summarizes what tax preparers need to know about standard and itemized deductions for the RTRP exam. Most taxpayers have the choice to use the method of deduction that gives them the lowest tax liability by choosing between standard and itemized deduction.
Module IV of the 1040 Exam Prep e-Books Series focuses on the analysis of items of income that Congress has specifically authorized the taxpayers to exclude form Gross Income. Non-taxable incomes identification and analysis is covered in this module.
Module III of the 1040 Exam Prep e-Books Series presents a description and analysis of the most common elements taxpayers have to report as income and their corresponding tax treatment. As a general rule, all types of income are taxable unless they are specifically exempted by law.