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Individual Income Tax Course (Tax I)
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✅⛔Please Start Here!5 Topics
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SU 1: INTRODUCTION TO TAXATION: HISTORY OF U.S TAXATION & DIFFERENT TYPES OF TAXES
📖Brief History Of U.S Taxation2 Topics|1 Quiz -
📖The Different Types Of Taxes2 Topics|2 Quizzes
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📖Tax Structure: Progressive2 Topics
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📖Proportional & Regressive Tax Structure2 Topics|2 Quizzes
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SU 2: WORKING WITH THE TAX LAW📖Tax Law Legislative Authorities2 Topics
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📖Tax Law Administrative Authorities2 Topics
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📖Tax Law Judicial Authorities2 Topics
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📖IRS Audit/Examination Process2 Topics
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📖Tax Law Hierarchy2 Topics|2 Quizzes
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SU 3: DETERMINING FILING STATUS & RESIDENCY📖Income Tax Formula2 Topics|2 Quizzes
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📖Filing Requirements – Who Must File a Tax Return & When?2 Topics
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📖Filing Status3 Topics|2 Quizzes
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📖Qualifying Child Vs. Qualifying Relative3 Topics|2 Quizzes
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SU 4: TAXABLE & NONTAXABLE INCOME📖Overview Of Taxable Gross Income2 Topics|2 Quizzes
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📖Wages W-2 Income2 Topics|2 Quizzes
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📖Alimony Income2 Topics|3 Quizzes
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📖Interest Income2 Topics|2 Quizzes
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📖Dividend Income4 Topics|1 Quiz
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📖Introduction To Capital Gain/Loss2 Topics
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📖Prizes/Awards & Cancellation Of Debt2 Topics|2 Quizzes
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📖Pension & Annuities2 Topics|2 Quizzes
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📖Gambling & Unemployment Compensation2 Topics
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📖Social Security2 Topics|2 Quizzes
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📖Taxable Refund2 Topics
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📖Original Issue Discount2 Topics|1 Quiz
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SU 5: GROSS INCOME: EXCLUSION📖Gifts & Inheritances2 Topics|1 Quiz
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📖Life Insurance Proceeds2 Topics|2 Quizzes
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📖Scholarship & Fellowship2 Topics|2 Quizzes
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📖Damages / Compensations2 Topics|2 Quizzes
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📖Interest On Municipal Bonds2 Topics
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📖Educational Saving Bonds Series Ee Bonds2 Topics
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📖Tax Benefit Rule2 Topics
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📖CPA Simulation: Income Inclusion/Exclusion1 Topic
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SU 6: DEDUCTIONS & LOSSES IN GENERAL📖Deductions & Losses / For AGI / From AGI2 Topics|1 Quiz
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📖Ordinary, Necessary & Reasonable2 Topics
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📖Disallowed Deductions / Illegal Business / Political Contribution2 Topics
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📖Hobby Losses OBBBA2 Topics|1 Quiz
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📖Business Income & Loss (Schedule C)2 Topics
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📖Rental Income & Loss2 Topics
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📖Quasi CPA Simulation. Computing AGI Rental Income1 Topic|3 Quizzes
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📖Related Party transactions2 Topics|2 Quizzes
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📖Employee Vs. Independent Contractor2 Topics
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📖Transportations Expenses Deduction2 Topics
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📖Travel Expenses Deduction2 Topics
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📖Education Expense / Qualified Tuition Deduction2 Topics|2 Quizzes
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📖Meals & Entertainment Expense2 Topics
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📖Home Office Expense Deduction2 Topics
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SU 7: DEDUCTIONS & LOSSES: VARIOUS BUSINESSS EXPENSES & LOSSES📖Bad Debts Deduction2 Topics|2 Quizzes
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📖Worthless Securities / Small Business Stock Section 12442 Topics|2 Quizzes
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📖Research & Experimental Expenditures2 Topics
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📖Excess Business Loss Limitation2 Topics
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📖Net Operating Loss NOL2 Topics|3 Quizzes
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📖Accountable Plans & Non Accountable Plans2 Topics
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SU 8: ADJUSTMENTS TO GROSS INCOME📖Educator Expense Deduction2 Topics
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📖Self Employed Health Insurance Deduction2 Topics|1 Quiz
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📖Health Savings Account / HSA2 Topics|2 Quizzes
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📖Student Loan Interest Tax Deduction For AGI2 Topics|1 Quiz
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📖Penalty For Early Withdrawal (OBBBA)2 Topics
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📖Moving Expense Deduction For Active Military Members (OBBBA)2 Topics|1 Quiz
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📖Deduction For Half Of Self-Employment Tax2 Topics
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SU 9: STANDARD DEDUCTION & ITEMIZED DEDUCTIONS📖Deductions For Individual Taxpayers2 Topics
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📖Itemized Deduction Or Standard Deduction2 Topics|2 Quizzes
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📖Medical Expense Deduction2 Topics|2 Quizzes
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📖Casualty & Theft Losses (OBBBA)2 Topics
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📖State & Local Deductions SALT Schedule A (OBBBA)2 Topics|2 Quizzes
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📖Interest Deduction On Schedule A (OBBBA)2 Topics|2 Quizzes
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📖Charitable Contributions4 Topics|2 Quizzes
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📖Other Itemized Deductions (OBBBA)2 Topics|1 Quiz
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SU 10: SECTION 199A QUALIFIED BUSINESS DEDUCTION📖Introduction To Qualified Business Income Deduction (OBBBA)2 Topics
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📖Qualified Business Income Deduction Wages & PPE Limitations (OBBBA)2 Topics
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📖Qualified Business Income Deduction Specified Services Business (OBBBA)2 Topics
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SU 11: TAX COMPUTATION📖Compute Taxes Using Tables & Schedules2 Topics
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📖Tax Computation: Marginal Vs. Average3 Topics
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📖Kiddie Tax Computation2 Topics|2 Quizzes
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SU 12: INVESTOR LOSSES / PASSIVE ACTIVITY / MATERIAL PARTICIPATION / AT-RISK LIMIT📖PAL & At-Risk Limitation4 Topics|4 Quizzes
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SU 13: INDIVIDUAL TAX CREDITS📖Introduction To Tax Credits2 Topics
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📖Introduction To Business Credits2 Topics
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📖Work Opportunity & Rehabilitation Expenditure Tax Credit2 Topics
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📖Research Credit2 Topics
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📖Various Business Credits2 Topics
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📖Earned Income Tax Credit (OBBBA)2 Topics
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📖Foreign Tax Credit2 Topics
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📖Adoption Tax Credit2 Topics
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📖Child Tax Credit (OBBBA)2 Topics
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📖Elderly & Disabled Tax Credit2 Topics
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📖Dependent Care Credits2 Topics
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📖Education Credits2 Topics
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📖Retirement Savings Contribution Credit2 Topics|4 Quizzes
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SU 14: CALCULATING THE BASIS OF ASSETS📖Introduction To Property Transactions2 Topics
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📖Basics Of Property Basis2 Topics|2 Quizzes
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📖Amount Realized2 Topics|2 Quizzes
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📖Gift Property – Tax Basis2 Topics|2 Quizzes
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📖Basis For Inherited Property2 Topics|2 Quizzes
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📖Recognized Vs. Realized2 Topics|2 Quizzes
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📖Section 1301 Like-Kind Exchange2 Topics|2 Quizzes
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📖Section 1031 W/Liabilities3 Topics
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📖Involuntary Conversion2 Topics|2 Quizzes
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📖Section 121 Homeowner Exclusion2 Topics|2 Quizzes
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📖Disposition Of Personal Use Property2 Topics
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📖Wash Sale Loss2 Topics|2 Quizzes
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SU 15: CAPITAL GAINS & LOSSES📖Introduction To Capital Assets2 Topics|1 Quiz
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📖Netting Capital Gains & Losses2 Topics|2 Quizzes
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📖Section 1231 Assets2 Topics|2 Quizzes
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📖Section 1245 Assets Depreciation Recapture3 Topics|2 Quizzes
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📖Section 1250 Unrecaptured Gain2 Topics|2 Quizzes
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SU 16: DEPRECIATION, COST RECOVERY & AMORTIZATION📖Cost Recovery / Half Year Convention2 Topics
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📖Mid Quarter Convention / Depreciation & Cost Recovery2 Topics
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📖Mid Month Convention / Depreciation Of Real Property2 Topics|2 Quizzes
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📖Section 179 Deduction2 Topics
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📖First Year Bonus Depreciation2 Topics|2 Quizzes
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📖Depreciation Of Listed Property2 Topics|2 Quizzes
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📖Section 197 Amortization Of Intangible Assets2 Topics|2 Quizzes
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SU 17: ACCOUNTING PERIODS & METHODS: TAX ACCOUNTING METHODS📖Cash Method2 Topics
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📖Accrual Method2 Topics
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📖Methods Of Accounting For Tax Purposes Cash & Accrual4 Topics
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📖Installment Sales2 Topics|2 Quizzes
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📖Uniform Cost Capitalization (UNICAP)2 Topics|1 Quiz
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📖Taxable Long Term Contract: % Of Completion & completed Contract2 Topics|1 Quiz
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SU 18: ADDITIONAL TAXES & CREDITS📖Introduction To Alternative Minimum Tax (AMT)2 Topics
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📖Adjustments For Alternative Minimum Tax2 Topics
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📖Preference For Alternative Minimum Tax (AMT)2 Topics
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📖Alternative Minimum Tax (AMT) Explained4 Topics
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SU 19: RETIREMENT PLANS📖Retirement Plans2 Topics
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📖Deduction For Individual Retirement Account / Roth IRA2 Topics|2 Quizzes
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📖Roth IRA2 Topics
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📖IRA Distributions2 Topics|1 Quiz
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📖Minimum Required Distribution: Taxation For Qualified Pension Plans2 Topics
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📖Self-Employed Retirement Plans: 401 K, SEP Plan, Keogh Plan2 Topics
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SU 20: TAXPAYERS' PENALTIES📖Penalty For Failure To Pay & Failure To File2 Topics
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📖Accuracy Related Penalty2 Topics
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📖Failure To Pay Estimated Taxes2 Topics
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SU 21: PAYROLL TAXES📖Payroll Taxes: W 4 Explained2 Topics
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📖FICA Taxes Explained4 Topics|1 Quiz
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📖Federal Unemployment Tax Act (FUTA)2 Topics|1 Quiz
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📖Form 941″ Payroll Taxes2 Topics
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📖Self-Employment, Additional Medicare & Net Investment Income Tax2 Topics|2 Quizzes
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SU 22: CIRCULAR 230📖Circular 230 Explained2 Topics|4 Quizzes
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SU 23: ESTATES & GIFT TAXES📖Unified Transfer Tax System Part 1: Exclusions2 Topics|1 Quiz
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📖Unified Transfer Tax System Part 2: Gift Tax3 Topics|3 Quizzes
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Responses
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Hello –
I am unclear of the difference between a dependent relative and an dependent which is categorized as an ‘other dependent’ which equates to, I believe, a $500 credit.
Can I trouble you to explain the difference?
Thank you –
Justin
Hello Justin,
Can you please mention which question are you referring to ?
Farhat Lectures support team
Hello,
For question 3, if John’s father was a resident of Canada, would he qualify as a dependent relative? The Becker material states that a dependent relative can only be a citizen of the United States or Residents of the United States, Mexico, or Canada. However, the explanation for this question only mentioned that he must be a US citizen or a US resident.
For #3 if John’s father was both a citizen and resident of Canada, could he then be claimed as a dependent?
Hello Vinny,
For a person to be claimed as a qualifying relative for U.S. tax purposes, the IRS requires that the person must be either:
– A citizen of the United States (John’s father does NOT meet this test since he is a citizen of Canada), or
A resident of the United States, Canada, or Mexico (John’s father does NOT meet this test since he is a resident of Germany).
Since the requirement specifies that the person must be either a U.S. citizen or a resident of the U.S., Canada, or Mexico, John’s father does not qualify as a dependent because he is neither a U.S. citizen nor a resident of the U.S., Canada, or Mexico.
Therefore, the correct answer to the question is False.
I hope this makes sense!
Please take a look at how this question is graded as I believe it is incorrect. It should be False which the explanation of the question actually agrees with but it’s still marked wrong and says it should be True.
Hello Christopher,
The gross income test applies only to qualifying relatives, not qualifying children. Being at the age of 21, Ayla may be claimed as a qualifying child by her parents, provided she is a full-time student and does not contribute more than half of her own support.
Therefore, the answer is “true”, Ayla may be claimed as a dependent by her parents if she is a full-time student.
I hope this clears up the confusion! Let me know if you need additional guidance.
Question #6 Milkov Family…this question may be better clarified stated as…Milkove Family “household” to show that the children live in the same household. Anyway that’s my tip for clarity!
Hello Marylou,
Thank you for your feedback! While it’s true that adding “household” could clarify the context, it’s worth noting that for dependency purposes, both children do not need to be living in the same household with their parents for the whole year.
– For Jane (qualifying child), she must live with her parents when she is away from college. Temporary absences to attend the university count as living with them.
– For James (qualifying relative), there is no requirement to live with his parents. Only non-relatives must be living with you for the whole year for the qualifying relative test.
In addition, the use of the word “may” in the question reflects the possibility that the parents can claim their children as dependents if all qualifying criteria are met. Since there are no contrary circumstances presented in the facts, such as the children filing joint returns, being supported by someone else, or failing other dependency requirements, it is reasonable to state that the parents “may” claim them. The use of “may” reflects the conditional nature of the claim based on the information provided.
Thank you for your insight! Let me know if you have further suggestions or questions.
Hi why are these numbers updated to the current ones
Hi Trevlyn,
I’ve updated the numbers.
Thank you for pointing this out!
Question 2 – the response explanation is a little skewed and presenting it like a dependent relative only. However in this case Ray does not meet the requirements to be claimed as a dependent – both child and relative “if he does not live with them”.
Hello Kalgi,
I’ve updated the explanation for more clarity.
Thank you for bringing this to our attention!