If you have prepared returns for a few years or even if you are new to income tax preparation, you are familiar with Adjustments to Income. However, they are certainly more than they appear on the surface, since many of these adjustments can also represent tools in your toolbox that allow the outcome of the return to be changed, sometimes even after the close of the tax year! Understanding adjustments are paramount to successfully preparing a return, but also in discovering how they alter the outcome. These can include Educator Expenses, HSAs, Self Employed Health Insurance deductions, Traditional IRA deductions, student loan interest, and qualifying alimony deductions just to name a few. In this course, you will learn about what adjustments to income are, how they affect the overall outcome, and even learn from a few real life examples in how they shifted the overall result more than would be expected on the surface. No matter if you are new to the world of tax preparation or if you are seasoned professional, if you are looking for a little more knowledge to assist your clients beyond basic tax preparation, this course is for you!
1) Identify the different items that are considered adjustments to income
2) Understand the different rules and qualifications to utilize these adjustments
3) Identify when it is appropriate to use an adjustment to income after the close of a tax year
4) Learn how tax return results can change by utilizing adjustments