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Study Guide - Education Tax Benefits

The study guide is provided to guide you through the course material in a step by step format.

Course material is an online PDF document available immediately upon purchase.

Prerequisite: None

Course level: Basic

Advanced preparation: None

Teaching method: Online study and exam

Chapter 1 – 529 Qualified Tuition Programs

The objective of this chapter is to review how to:

  • Compare prepaid tuition plans with college savings plans;
  • Identify the expenses considered qualified education expenses under a qualified tuition program and the educational institutions at which such expenses may be incurred;
  • Recognize the rules applicable to IRC §529 qualified tuition program contribution limits and the tax treatment of plan contributions; and
  • Apply the applicable tax law to IRC §529 qualified tuition program distributions.

Chapter 2 – Coverdell Education Savings Accounts

The objective of this chapter is to review how to:

  • Apply the federal income tax rules to ESA contributions, earnings and distributions;
  • Recognize the eligibility requirements applicable to ESA contributors and beneficiaries;
  • Identify the ESA contribution limits; and
  • Apply the rules governing ESA rollovers.

Chapter 3 – Education Savings Bond Program

In this chapter we will look at the federal education savings bond program rules. When you have completed this chapter, you should be able to:

  • Identify the U.S. savings bonds included in the education savings bond program;
  • List the education expenses that qualify under the education savings bond program;
  • Recognize the kind of educational institutions that are eligible for inclusion in the education savings bond program;
  • Identify the benefits whose receipt reduce a taxpayer’s qualified education expenses; and
  • Calculate the tax-free portion of adjusted qualified education expenses.

Chapter 4 – Education Tax Credits

The objective of this chapter is to review how to:

  • Recognize who is eligible to claim the tax credits;
  • Identify the expenses considered qualified education expenses and those expenses that do not qualify;
  • List the benefits for which qualified education expenses must be adjusted;
  • Define an eligible educational institution;
  • Calculate the available tax credits; and
  • Apply the tax-benefit recapture rules.

Chapter 5 – Taxation of Educational Assistance, Tuition & Fees and Student Loans

The objective of this chapter is to review how to:

  • Identify the tax treatment of educational assistance, including –
    • Scholarships and fellowships,
    • Fulbright grants,
    • Need-based education grants,
    • Veterans’ education benefits, and
    • Tuition reductions;
  • Recognize the federal income tax treatment of tuition and fees paid for higher education;
  • Calculate the student loan interest deduction available to a taxpayer; and
  • Apply the applicable federal income tax rules to student loan cancellations and repayment assistance.

 

 

 

Study Guide - Earned Income Credit

The study guide is provided to guide you through the course material in a step by step format.

Course material is an online PDF document available immediately upon purchase.

Prerequisite: None

Course level: Basic

Advanced preparation: None

Teaching method: Online study and exam

Chapter 1 – Earned Income Credit Rules

The objective of this chapter is to review how to:

  • Recognize the EIC eligibility rules that apply to all taxpayers;
  • Identify the EIC eligibility rules applicable to taxpayers who have a qualifying child;
  • List the EIC eligibility rules that apply to taxpayers who do not have a qualifying child; and
  • Recognize how the EIC for which an eligible taxpayer qualifies is determined.

Chapter 2 – Earned Income Credit Errors

The objective of this chapter is to review how to:

  • Recognize the incidence of errors in claiming the earned income credit and their probable causes;
  • Identify the estimated impact of earned income credit errors on federal revenue;
  • List the most common earned income credit errors and their potential problem areas; and
  • Recognize the additional questions tax preparers need to ask if taxpayer-provided information appears incorrect, inconsistent or incomplete.

Chapter 3 – EIC Disallowance

The objective of this chapter is to review how to:

  • List the principal tools used by the IRS to verify the propriety of EIC claims and to prevent or recover improper EIC payments;
  • Identify the additional requirements imposed on taxpayers claiming the EIC following disallowance;
  • Recognize the exceptions applicable to the requirement that a taxpayer file IRS Form 8862 following disallowance of an EIC claim;
  • Determine the year in which an IRS Form 8862 must be filed to claim EIC after the IRS has disallowed it; and
  • Recognize the duration of the prohibition against filing for the EIC in the event a taxpayer’s EIC error is determined to be the result of reckless/intentional disregard of EIC rules or fraud.

Chapter 4 – EIC Due Diligence

The objective of this chapter is to review how to:

  • List the due diligence requirements a tax return preparer must meet when preparing a tax return claiming the earned income credit;
  • Recognize the records a tax return preparer is required to keep to support a client’s claim for the earned income credit;
  • Identify the penalties that may be imposed on a tax return preparer for failing to comply with due diligence requirements when preparing a client’s tax return claiming the earned income credit; and
  • Identify the sanctions that may be imposed on an employer whose employee fails to comply with EIC due diligence requirements.

Study Guide - Retirement Plans, Pensions and Annuities

The study guide is provided to guide you through the course material in a step by step format.

Course material is an online PDF document available immediately upon purchase.

Prerequisite: None

Course level: Basic

Advanced preparation: None

Teaching method: Online study and exam

Chapter 1 – 

The objective of this chapter is to review how to:

  • Describe the types and characteristics of qualified employee plans;
  • Explain the limits imposed on qualified employee plan contributions and benefits;
  • Describe the requirements applicable to qualified employee plan loans; and
  • Explain the rules governing rollovers to and from qualified employee plans.
  • Describe the requirements applicable to qualified employee plan loans and their tax treatment;
  • Apply the federal tax laws to qualified employee plan contributions and distributions;
  • List the principal types of annuities and their characteristics; and
  • Describe how annuity contributions and distributions are taxed.

Chapter 2 – 

The objective of this chapter is to review how to:

  • Describe the tax treatment of loans from qualified plans; and
  • Apply the federal tax laws to qualified employee plan contributions and distributions.
  • List the principal types of annuities and their characteristics; and
  • Describe how annuity contributions and distributions are taxed.

Chapter 3 – 

The objective of this chapter is to review how to:

  • List the principal types of annuities;
  • Describe the principal characteristics of deferred and immediate annuities; and
  • Explain the tax treatment of annuity contributions, distributions taken as an annuity, surrenders, loans and withdrawals.

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