STUDY GUIDE FOR TEST 1 – INCOME TAX
CHAPTER 1
 Be able to identify what qualifies as a tax
 Know all terminology in the chapter
 Be able to calculate taxes
 Know how to calculate the effective tax rate
 Know how to calculate the marginal tax rate
CHAPTER 2
 Know taxpayer filing requirements
 Understand statute of limitations
 Know taxpayer due date and extensions
 Study tax professional responsibilities
o Statement on Standards for Tax Services
o IRS Circular 230
 Know taxpayer and tax practitioner penalties
CHAPTER 4
 Know individual income tax formula
 Be able to calculate gross income
 Understand exclusions and deferrals
 Know what goes on “For AGI” vs. “From AGI”
 Know the itemized deductions
 Know the character of income
 Understand tax credits and tax prepayments
 Study Dependency requirements, qualifying child and qualifying relative
 Know and be able to identify the filing status
CHAPTER 5
 Know what is included in Gross Income (economic benefit, realization and
recognition)
 Study all the principles in this chapter
 Study when taxpayers recognize income (accounting methods, constructive receipt
and claim of right)
 Study who recognizes the income (community property vs. common law systems)
 Know the types of income (income from services, property and other sources)
 Understand exclusion provisions