TEST — Annual Federal Tax Refresher Import

Course Overview

Course Information

Exam

Course Introduction

Learning Goals For This Course

Course Handbook 2026

Learning Objectives

1.1 Annual inflation and cost of living adjustments

1.2 New standard mileage rates (Notice 2026-10)

1.3 Third-Party Network Transaction Reporting Requirements (FS-2025-08), (IR-2025-107) (Notice 2024-85) (Form 1099-K, Payment Card and Third Party Network Transactions)

1.4 Information Reporting Threshold Update (OBBBA §70433)

1.5 Child and Dependent Care Credit Update (OBBBA §70405)

1.6 Adoption Credit Update (OBBBA §70402; Rev. Proc. 2025-32)

1.7 American Opportunity Credit and Lifetime Learning Credit Update (OBBBA §70606)

1.8 Alternative Fuel Vehicle Refueling Property Credit Update (OBBBA §70433)

1.9 Itemized Deduction Updates (OBBBA §§70108, 70109, 70111, 70114, 70120)

1.9.1 Itemized Deduction Limitations

1.9.2 Mortgage Interest Deduction (OBBBA §70108)

1.9.3 Casualty Loss Deduction (OBBBA §70109)

1.9.4 Gambling Losses (OBBBA §70114)

1.9.5 State and Local Tax (SALT) Deduction (OBBBA §70120)

1.10 Form 1040, Schedule 1-A – Additional Deductions (FS-2025-03)

1.10.1 Deduction for Tip Income (OBBBA §70201)

1.10.2 Deduction for Overtime Pay (OBBBA §70202; FS-2026-01)

1.10.3 Auto Loan Interest Deduction (OBBBA §70203)

1.10.4 Enhanced Deduction for Seniors (OBBBA §70103)

1.11 Charitable Contributions Update (OBBBA §§70424, 70425)

1.12 529 Plan Account Disbursements Update (OBBBA §§70413, 70414)

1.13 Trump Accounts (OBBBA §70204; Notice 2025-68)

1.14 Health Savings Accounts

Key Topics Covered in This Section:

Learning Objectives

2.1 Filing Status Review

2.2 Taxability of Earnings (such as wages, salaries, tips)

2.3 Interest, Dividends, Foreign Accounts, and Trusts

2.4 Reporting and Taxability of Retirement Income

2.5 IRAs (Contributions, Deductions, Distributions, and 10% Penalty)

2.6 Reporting and Taxability of Unemployment Compensation

2.7 Alimony (Divorce Agreements Executed Before 2019; Executed or Modified After 2018)

2.8 Schedule C, Profit or Loss from Business (Sole Proprietorship)

2.8.1 Determination of Gross Income & Deductions

2.8.2 Business versus Hobby

2.8.3 Business Use of Home (Regular vs. Simplified Method)

2.8.4 Recordkeeping Requirements

2.8.5 Entertainment Expenses (50% of Business Meals Deductible)

2.8.6 Section 179 Expense Limits (Rev. Proc. 2025-32(.10))

2.8.7 Depreciation

2.8.7.1 Bonus Depreciation (100% Limit Reinstated) (Notice 2026-11)

2.8.7.2 Luxury Auto Depreciation Limits (Rev. Proc. 2026-15)

2.8.7.3 Listed Property Updates

2.9 Overview of Capital Gains and Losses

2.10 Standard Deduction (Rev. Proc. 2025-32(.14))

2.11 Schedule A, Itemized Deductions (Form 1040, Schedule A)

2.11.1 Medical and Dental Expenses

2.11.2 State and Local Tax Deduction

2.11.3 Home Mortgage Interest and Home Equity Loans

2.11.4 Charitable Contributions

2.11.4.1 60% AGI Limit for Cash Contributions

2.11.4.2 Contemporaneous Written Acknowledgment Required for Contributions of $250 or More (Cash or Property)

2.11.5 Federally Declared Disaster Area Casualty Loss Deduction (Including Loss Deduction for Non-Itemizers)

2.11.6 Moving Expense Deduction Suspended and Reimbursement Taxable

2.11.7 Recordkeeping and Documentation of Deductions

2.12 Tax credit eligibility (child tax credit, credit for other dependents, child and dependent care tax credit, education tax credits, earned income tax credit)

2.13 General Topics

2.13.1 Tax treatment of the acquisition and disposition of digital assets

2.13.2 Alternative Minimum Tax (AMT) – Exemption/Phaseout Amounts (Rev. Proc. 2025-32(.10))

2.13.3 QBI deduction (including Form 8995 and Form 8995-A) (Rev. Proc. 2025-32(.26))

1. Below the Threshold Amount

2. Within the Phase-In Range

3. Above the Phase-In Range

2.13.4 Kiddie Tax including (Rev. Proc. 2025-32(.02)(.11))

2.13.5 Section 529 Plans

2.13.6 Achieving a Better Life Experience (ABLE) account (IRC §529A as amended)

2.13.7 Cancellation of student debt (when to exclude from income)

1. Temporary Exclusion (2021–2025) under the American Rescue Plan Act

2. Public Service Loan Forgiveness (PSLF)

3. Teacher Loan Forgiveness

4. Death or Permanent Disability

2.13.8 Net Operating Loss (NOL)

What Can You Do with an NOL?

1. Carried Forward Indefinitely

2. Limited to 80% of Taxable Income

3. No Carrybacks (with exceptions)

2.13.9 Premium Tax Credit (FS-2025-10)

2.13.10 Employee fringe benefits

2.14 Withholding and Estimated Tax Payments

2.15 Balance Due and Refund Options (www.irs.gov/payments)

1. You Overpaid → Refund

2.16 Tax return due dates and filing for extensions

Key Topics Covered in This Section:

Learning Objectives

3.1 Tax-Related Identity Theft (Pub. 5199)

3.2 Safeguarding taxpayer data (Pub. 4557)

3.3 Overview and expiration of Individual Taxpayer Identification Numbers (ITINs) (Pub. 1915)

3.4 Preparer penalties (inflation adjustments to penalty amounts) (Rev. Proc. 2025-32(.54)

3.5 Tax preparation due diligence

3.6 E-file requirements (no pay stub filing, when to get signature form, timing for handling rejects)

3.7 Annual Filing Season Program

3.7.1. Annual Filing Season Program Requirements

3.7.2 Circular 230 and consent to be subject to Circular 230 rules

3.7.3 Limited Representation

3.8 Tax Pro Account and Individual Online Account (Pub. 5533) (Pub. 5533-A)

Key Topics Covered in This Section:

2026 AFTR Final Exam - Test Bank Draft