Intro to Individual Taxation | Breezy CPA

Explore the individual tax formula, linking gross income, AGI, deductions, and the Form 1040 with schedules A–F to determine tax liability.

Explore cash vs accrual tax accounting, detailing who uses each method, when income is earned versus received, and how inventory affects method choices.

See a real-world filing for a married couple filing jointly, tracing wages, deductions, and schedules into Form 1040. Learn how Schedule A–E and capital losses affect tax outcomes.

Demonstrate calculating adjusted gross income and taxable income through educator expenses, self-employment taxes, SEP and IRA contributions, health savings account deduction, and itemized deductions with tax brackets and credits.

Explain filing statuses, single to head of household and qualifying widow with dependent child, and how exemptions for spouses and dependents reduce taxable income, with phase-out and mutual support agreement.

Understand the statute of limitations for IRS taxes and penalties. The period starts the later of the return filing date or the extended due date, and varies by error type.

Identify gross income components on Form 1040, including wages, interest, alimony, jury duty pay, business and investment income, and note exclusions such as employer benefits, scholarships, refunds, and prizes.

Learn how interest and dividends are taxed on Schedule B and Schedule D, including exclusions, qualified dividend rates, long-term capital gains, and the $3,000 net capital loss limit.

Learn adjustments that arrive at adjusted gross income, including educator expenses, health savings accounts, self‑employment tax and health insurance deductions, alimony, moving, student loan interest, and IRA deductions.

Assess standard vs itemized deductions on the 2017 1040, noting Schedule A categories like medical expenses, taxes, mortgage interest, charitable contributions, and agi thresholds.

Explore refundable and nonrefundable credits, including the earned income credit, child tax credit, dependent care credit, and education credits such as the American Opportunity Credit and Lifetime Learning Credit.

Understand the alternative minimum tax, its comparison with regular tax, and the AMT formula, including adjustments, preferences, exemptions, and how withholdings affect the tentative minimum tax and AMT due.

Explore how marginal tax brackets yield an effective rate with a practical example, and review the 3.8% surtax, capital gains rates, and carryover rules.

A tax preparer is anyone who prepares a return for compensation and must have a nine-digit PTI number; contingent fees are prohibited, and confidentiality has limited exceptions.