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| Author : | Paul Winn, CLU, ChFC |
| Course Length : | Pages: 160 ||| Word Count: 51,249 ||| Review Questions: 24 ||| Final Exam Questions: 40 |
| CPE Credits : | 8.0 |
| IRS Credits : | 8 |
| Price : | $71.95 |
| Passing Score : | 70% |
| Course Type: | NASBA QAS - Text - NASBA Registry - IRS Enrolled Agents - Registered Tax Return Preparers |
| Technical Designation: | Technical |
| Primary Subject-Field Of Study: | Taxes - Taxes for Course Id 2889 |
| Overview : |
1. Who is this course for? This course is intended for anyone needing Continuing Professional Education (CPE), including CPAs, accountants, IRS Enrolled Agents, and Registered Tax Return Preparers who prepare individual Form 1040 income tax returns reporting clients’ 2026 income. 2. What is this course about or what problem does this course solve? This course provides a comprehensive update on tax law changes, inflation-adjusted limits, individual income tax rules, tax credits, deductions, filing requirements, preparer responsibilities, ethics, practices, and procedures that affect the preparation of 2026 individual federal income tax returns during the 2027 tax season. 3. Where can the knowledge from this course be used? The knowledge gained from this course can be used in preparing individual federal income tax returns, advising taxpayers on current tax rules and benefits, applying recent legislative changes, maintaining compliance with IRS requirements, and meeting professional tax preparation responsibilities. 4. Why is this course important to a CPA, Accountant, or IRS Enrolled Agent? This course is important because it helps tax professionals stay current with recent tax legislation, inflation-related tax adjustments, IRS compliance requirements, preparer due diligence standards, Circular 230 responsibilities, and ethical obligations that directly impact accurate tax return preparation and taxpayer representation. 5. When is this course relevant or timely? This course is most relevant during the 2027 tax filing season because it specifically covers tax issues applicable to 2026 income and incorporates recent legislative changes, inflation adjustments, and updated IRS guidance affecting returns filed in 2027. 6. How is a course like this consumed or used? This course is completed as a QAS self-study text course that includes reading course materials, reviewing chapter content and review questions, and successfully passing the 40-question final exam with a minimum score of 70% to earn CPE and IRS credit. |
| Description : |
Please Note: This course covers tax issues applicable to 2026 income reported in the 2027 tax season. Each year, income tax return preparation is affected by inflation-related changes to various limits and new tax laws. This course will look at those changes and new laws. The 2027 Annual Tax Season Update course is based on the Annual Federal Tax Refresher course and is designed to provide valuable information to persons preparing individual 1040 income tax returns reflecting clients’ 2026 income. It does not, however, satisfy the Internal Revenue Service’s voluntary annual filing season program. The course a) examines new tax law and changes in various limits that reflect inflation, b) provides a general tax review, and c) discusses important rules governing tax return preparer ethics, practices and procedures. |
| Usage Rank : | 0 |
| Release : | 2026 |
| Version : | 1.0 |
| Prerequisites : | None. |
| Experience Level : | Overview |
| Additional Contents : | Complete, no additional material needed. |
| Additional Links : |
Internal: Federal Tax Updates Individuals IRS Procedure and Tax Legislation Video
Internal: Treasury Circular 230 For Enrolled Agents and Other Tax Preparers Video
External: IRS Publication 17 Your Federal Income Tax
External: Treasury Department Circular 230 Regulations Governing Practice Before the IRS
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| Advance Preparation : | None. |
| Delivery Method : | QAS Self Study |
| Intended Participants : | Anyone needing Continuing Professional Education (CPE). |
| Revision Date : | 18-Jun-2026 |
| NASBA Course Declaration : | Participants must complete the final examination within one year of purchase and with a minimum passing grade of 70% or better to receive CPE credit unless otherwise noted on the Course History page (i.e. California Ethics must score 90% or better). After logging in click on the Course History links on your My Courses page for the Begin date and Expire date for the Final Exam. |
| Approved Audience : | NASBA QAS - Text - NASBA Registry - IRS Enrolled Agents - Registered Tax Return Preparers - 2889 |
| Keywords : | Taxes, 2027, Annual, Tax, Season, Update, Mirrors, IRS-AFTR, cpe, cpa, online course |
| Learning Objectives : | Course Learning ObjectivesUpon completion of this course, you should be able to:
Chapter 1 – New Tax Law/Recent UpdatesChapter 1 Learning ObjectivesWhen you have completed chapter 1, you should be able to:
Chapter 2 – General Income Tax Review IChapter 2 Learning ObjectivesWhen you have completed chapter 2, you should be able to:
Chapter 3 General Income Tax Review IIChapter 3 Learning ObjectivesWhen you have completed chapter 3, you should be able to:
Chapter 4 – General Income Tax Review IIIChapter 4 Learning ObjectivesWhen you have completed chapter 4, you should be able to:
Chapter 5 – General Income Tax Review IVChapter 5 Learning ObjectivesWhen you have completed chapter 5, you should be able to:
Chapter 6 – General Income Tax Review VChapter 6 Learning ObjectivesWhen you have completed the chapter 6 text, you should be able to
Chapter 7 – Practices, Procedures & Professional ResponsibilityChapter 7 Learning ObjectivesWhen you have completed chapter 7, you should be able to:
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| Course Contents : | Course Learning Objectives Introduction to the Course Chapter 1 – New Tax Law/Recent Updates Chapter 1 Learning Objectives Introduction Annual Inflation Adjustments Education Expenses of Elementary and Secondary School Teachers Interest on Education Loans Amounts Included as Interest Foreign Earned Income Exclusion Earnings Excluded in Foreign Earned Income Limitation on Foreign Earned Income Annual Exclusion for Gifts Standard Mileage Rates Business Use of a Taxpayer’s Personal Vehicle Personal Vehicle Use for Charitable Purposes Use of a Taxpayer’s Personal Vehicle to Obtain Medical Care Moving Expenses in Military and Intelligence Community Relocations Basis Reduction Amount Payment Card and Third-Party Transaction Reporting Requirements OBBBA Repeals Change to Third-Party Network Reporting Transactions that Require Reporting Transactions not Requiring Reporting Information Reporting Threshold Changes- Forms 1099-MISC and 1099-NEC OBBBA Increases Child and Dependent Care Credit & Income Limit Adoption Credit Now Partially Refundable Eligible Child Qualified Adoption Expenses SSN Requirement for American Opportunity and Lifetime Learning Credits Alternative Fuel Vehicle Refueling Property Credit Alternative Fuel Vehicle Refueling Property Credit Limits Alternative Fuel Vehicle Refueling Property Defined OBBBA Accelerates End of Alternative Vehicle Refueling Property Credit by 5 ½ Years Itemized Deduction Updates Itemized Deduction Limitations OBBBA Eliminates Miscellaneous Deductions Subject to 2% for Other than Educator Costs Limitation on Tax Benefit of Itemized Deductions OBBBA Imposes Reduction on Itemized Deductions OBBBA Makes Mortgage Insurance Premiums Deductible for Itemizers OBBBA Makes Casualty Loss Changes Gambling Loss Deduction OBBBA Reduces Wagering Loss Deduction & Includes Travel & Lodging in Losses Deduction for State & Local Taxes Temporarily Increased (SALT Deduction) Reduction of SALT Limitation Based on Income Form 1040, Schedule 1-A, Additional Deductions Deduction for Tip Income Qualified Tips Defined Deduction for Overtime Pay Qualified Overtime Compensation Defined Deduction Limited by Modified Adjusted Gross Income Auto Interest Loan Deduction Qualified Passenger Vehicle Loan Interest Defined Applicable Passenger Vehicle Defined Enhanced Deduction for Seniors Charitable Contribution Deduction 0.5 Percent Floor on Deduction of Contributions 529 Plan Account Disbursements Trump Accounts and Contribution Pilot Program Trump Account Eligibility Requirements Trump Account Contributions Trump Account Distributions Form 4547 Trump Account Election Health Savings Accounts Direct Primary Care Service Arrangements Bronze & Catastrophic Plans Considered HDHPs Summary Chapter 1 Review Questions Chapter 1 Review Questions Feedback Chapter 2 – General Income Tax Review I Chapter 2 Learning Objectives Introduction Filing Status Review Benefits of Filing as Qualified Surviving Spouse Criteria for Filing as Qualifying Surviving Spouse Exceptions and Special Circumstances Qualifying Relative Tests Not a Qualifying Child Test Relationship Test Gross Income Test Support Test Taxability of Earnings W-2 Form, Wage and Tax Statement Advance Commissions and Other Earnings Allowances and Reimbursements Back Pay Awards Bonuses and Awards Differential Wage Payments Government Cost of Living Allowances Nonqualified Deferred Compensation Plans Notes Received for Services Severance Pay Sick Pay Social Security and Medicare Taxes Paid by an Employer Stock Appreciation Rights Tax on Tips Reduced Qualified Tips Defined Form 4137 - Tax on Unreported Tips Who Must File Allocated Tips Tips Reported to the Employer Payment of Tax Schedule B, Interest, Dividends, Foreign Accounts and Trusts Retirement Income Reporting and Taxability Social Security Benefits Taxability of Benefits Reporting Qualified Retirement Plans Contributions to Qualified Employee Plans Employee Plan Contributions SECURE 2.0 Act Affects Catch-Up Contributions Qualified Retirement Plan Distributions Form 1099-R Early Distributions Required Qualified Plan Minimum Distributions Qualified Plan Rollovers Plan Death Benefits Designated Roth Account Distributions Qualified Roth Account Distributions Tax-Free Nonqualified Roth Account Distributions Annuities Nonqualified Annuity Individual Retirement Accounts Traditional IRAs – Contributions & Distributions Premature Distributions Premature Distributions Avoiding Tax Penalty Required Distributions during Owner’s Lifetime Roth IRAs Limits on Roth IRA Contributions Non-Qualified Roth IRA Distributions of Gain before 59½ Subject to Tax Penalty No Required Roth IRA Lifetime Distributions IRA Rollover Per-Year Limit Form 1099-R Form 5498 Summary Chapter 2 Review Questions Chapter 2 Review Questions Feedback Chapter 3 General Income Tax Review II Chapter 3 Learning Objectives Introduction Reporting and Taxability of Unemployment Compensation Unemployment Compensation Taxable Nondeductible Contributions to Governmental Unemployment Compensation Plan Repayment of Unemployment Compensation Alimony – Pre 2019 and Post 2018 Divorce Agreements Schedule C, Profit or Loss from Business (Sole Proprietorship) Income & Expenses Defined Business vs. Hobby Business Use of a Home Methods of Figuring the Home-Office Deduction Actual Expense Method Nature of the Expense Percentage of the Home Used for Business Calculating Percentage of Home Used for Business Deductible Expenses for Home-Office Deduction Expenses Deductible by All Homeowners Expenses Deductible only by Taxpayers Using a Home for Business Deduction Limit Simplified Method Depreciation and Actual Expenses Related to Use of Home not Deductible No Deduction of Actual Expense Carryover for Simplified Method Users Expenses Deductible Irrespective of Business Use Special Rules Applicable to Simplified Method Gross Income Limitation Recordkeeping Requirements Gross Receipts Inventory Expenses Entertainment Expenses Exceptions for Certain Food and Beverage Expenses OBBBA Increases Meal Deduction for Restaurants & Others Section 179 Expense Limits Depreciation Bonus Depreciation Qualified Property Luxury Auto Depreciation Limits Listed Property Updates Deduction for Employees Business-use Requirement Passenger Automobile Limits and Rules Summary Chapter 3 Review Questions Chapter 3 Review Questions Feedback Chapter 4 – General Income Tax Review III Chapter 4 Learning Objectives Introduction Capital Gains and Losses Short-Term and Long-Term Capital Gains and Losses Reporting Capital Gains and Losses IRS Form 8949, Sales and Other Dispositions of Capital Assets Schedule D Maximum Capital Gains Rate Standard Deduction Eligibility Standard Deduction Made Permanent & Increased Standard Deduction for Blind and Senior Taxpayers Standard Deduction Summary Itemized Deductions Schedule A Medical and Dental Expenses State and Local Tax (SALT) Deduction Home Mortgage Interest and Home Equity Loans OBBBA Makes Mortgage Insurance Premiums Deductible for Itemizers Indebtedness Refinancing Charitable Contributions 60% AGI Limit for Cash Contributions Contemporaneous Written Acknowledgement Content and Timing of Contemporaneous Written Acknowledgement Casualty Loss Deduction Casualty Loss Deduction Limitation Extension and Modification Moving Expense Deduction Moving Expenses in Active Military and Intelligence Community Relocations Recordkeeping and Documentation of Deductions Summary Chapter 4 Review Questions Chapter 4 Review Questions Feedback Chapter 5 – General Income Tax Review IV Chapter 5 Learning Objectives Introduction Tax Credit Eligibility Child Tax Credit Child Tax Credit Phaseout and Nonrefundable Amounts Social Security Number Requirement Credit for Other Dependents Limits on the CTC and ODC Claiming CTC and ODC Additional Child Tax Credit Child and Dependent Care Credit Enhancement of the Dependent Care Assistance Program Eligible Care Recipients Limited to Qualifying Persons Eligible Taxpayers Education Credits American Opportunity Credit Figuring the American Opportunity Credit Lifetime Learning Credit Figuring the Lifetime Learning Credit Earned Income Tax Credit Adjusted Gross Income Limits Valid Social Security Number Required Tax Filing Status Separated Spouses Citizenship or Residency EITC Rules That Apply Only if the Taxpayer Has a Qualifying Child EITC Rules That Apply if Taxpayer Does Not Have a Qualifying Child Summary Chapter 5 Review Questions Chapter 5 Review Questions Feedback Chapter 6 – General Income Tax Review V Chapter 6 Learning Objectives Introduction Tax Treatment of Virtual Currency Form 1099-DA, Digital Asset Proceeds From Broker Transactions Alternative Minimum Tax (AMT) Alternative Minimum Tax Exemption Amount Increased QBI Deduction Qualified REIT Dividend Qualified Publicly Traded Partnership Income Deduction Eligibility Pass-Through Deduction Generally Limited to Qualified Trade or Business Qualified Trade or Business Exception for Specified Service Trade or Business IRS Forms for Qualified Business Income Deduction – 8995 & 8995-A Qualified Business Income Deduction Simplified Computation - Form 8995 Qualified Business Income Deduction - Form 8995-A Taxable Income Threshold Pass-Through Deduction for Qualified Trade or Business Owners QBI Component Calculation Qualified Property UBIA of Qualified Property Rental Real Estate Safe Harbor Kiddie Tax – Unearned Income of Minor Children Kiddie Tax Applicability Tax for Certain Children Who Have Unearned Income - Form 8615 Parents' Election To Report Child's Interest and Dividends - Form 8814 Section 529 Plans Payments From Qualified Education Programs - Form 1099-Q Section 529 Plans and Post Secondary Credentials Post-Secondary Credential Program Defined Achieving a Better Life Experience (ABLE) Account Tax-Deferred Account ABLE Account Distributions ABLE Account Contributions OBBBA Makes Rollovers to ABLE Accounts Permanent Cancellation of Student Debt Net Operating Loss (NOL) OBBBA Reduces EBL Limitation & Makes Rule Permanent Premium Tax Credit Federal Poverty Level Amount of the Credit Benchmark Plan Taxpayer’s Expected Contribution Additional Tax Limitation Eliminated Employee Fringe Benefits Cafeteria Plans Qualified Transportation Fringe Benefits Medical Savings Accounts Archer MSA Benefits Archer MSA Eligibility High Deductible Health Plan Requirement Archer MSA Contributions Health Savings Accounts HSA Benefits HSA Eligibility HSA High Deductible Health Plan Requirement HSA Contributions HSA Distributions Tax Withholding and Estimated Tax Payments Tax Withholding Form W-4 Exemption from Withholding Penalties Withholding from Nonwage Income Estimated Tax Requirement to Pay Estimated Tax Balance Due and Refund Options Payment of Income Tax Owed Refunds Limit on Direct Deposit Refunds Federal Income Tax Return Filing Due Dates and Filing for Extensions Calendar Year and Fiscal Year Taxpayers Extensions of Time to File Automatic Extension of Time to File Individuals Outside the United States Individuals Serving in a Combat Zone Summary Chapter 6 Review Questions Chapter 6 Review Questions Feedback Chapter 7 – Practices, Procedures & Professional Responsibility Chapter 7 Learning Objectives Introduction Tax Related Identity Theft (Publication 5199) Assisting Victims of Identity Theft Safeguarding Taxpayer Data (Publication 4557) Laws and Regulations Requiring Privacy/Security Best Practices to Safeguard Data Extended Validation SSL Certificate External Vulnerability Scan Information Privacy and Safeguard Policies Protection Against Bulk Filing of Fraudulent Income Tax Returns Public Chapter Name Registration Reporting of Security Incidents Individual Taxpayer Identification Numbers Who Needs an ITIN? ITIN Renewals Preparer Penalties Due Diligence in Tax Preparation Head of Household Filing Status Taxpayer Considered Unmarried Required Marriage Test Supporting Documents Keeping up the Taxpayer’s Home Required Keeping Up a Home Test Supporting Documents Qualifying Person Qualifying Child Required Qualifying Person Test Supporting Documents Common Head of Household Errors Earned Income Tax Credit EITC Due Diligence Requirements Most Common EITC Errors Education Tax Credits Most Common AOTC Errors Child Tax Credit Most Common CTC/ACTC/ODC Errors Compliance with E-file Procedures Affected Tax Return Preparers Timing of Taxpayer Signature Timing of Filing Recordkeeping Prohibited Filing with Pay Stub Proper Handling of Rejects Tax Return Preparer Duties and Restrictions Tax Pro and Individual Online Accounts Tax Pro Account IRS Individual Online Account Summary Chapter 7 Review Questions Chapter 7 Review Questions Feedback Appendix A Appendix B Appendix C – Form W-2 Appendix D – Form 1099-R Glossary |
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