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+1. Read the textbook
+
+2. Watch the Videos
+
+Captioning is available on every video. 
+Note: Not every detail in the books is covered in the videos,
+
+3. Answer the MCQs
+
+Answering practice questions without studying the materials will not prepare you for the exam. The questions on the exam will be very different from the practice questions. Only studying and knowing the concepts will prepare you to answer the unfamiliar questions on the exam.
+
+4. Review / Forum / Ask Questions
+
+If you have questions after going through the materials, ask for help from our teachers in the Student Forum.

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+For the current exam cycle, Part 1 of the exam is broken down into the following sections and corresponding number of questions:
+
+1. Preliminary Work with Taxpayer Data - 14 questions
+2. Income and Assets - 17 questions
+3. Deductions and Credits - 17 questions
+4. Taxation - 15 questions
+5. Advising the Individual Taxpayer - 11 questions
+6. Specialized Returns for Individuals - 12 questions
+
+Use of Prior Year Returns tax returns for clients, tax professionals are expected to gather and verify all necessary taxpayer information. 
+
+This includes reviewing prior-year tax returns for accuracy, completeness, and compliance. If any errors or omissions are discovered on a prior-year return, the preparer is required by law to inform the taxpayer of the mistake and explain the potential consequences if it is not corrected.
+
+However, the preparer is not obligated to fix the error. 
+
+prior-year returns can help identify major mathematical mistakes and alert the preparer to any issues that may impact the current year's return.
+
+During this review process, the preparer must also consider any items from previous years that may affect the current year's return, such as:
+
+1. Carryovers,
+2. Net operating losses,
+
+Tax credit carryovers, of which examples include the pr adoption cred or year AMT tax credit and the prior-year depreciation and asset basis.

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+Taxpayer Biographical Information
+
+When filing tax returns, information is required. A tax professional must collect this information: legal mame, date of birth, and marital status, Residency status and/or citizenship, Dependent information, the taxpayer's identification number (SSN, PTIN; GF NTIN)
+
+10 order o prevent fraudulent tax lings, i is important for ax preparers to request identification from taxpayers. Photo IDs are prefered and should include the taxpayer's name and current address.
+
+Its also crucial for ax preparers to verify social security cars, ITN letters, and other documents to ensure that the correct TINS are used for the taxpayer, thei spouse, and any dependent sted on the Additionally, taxpayers have the option o request an Identity Protection Personal Identification Number IP PIN) which must be entered ino software fo the RS accept an electronically fled ax return. This service is now avaiable to anyone, regardless of whether they have been a victim of identity theft or not The IRS require al individuals listed on a federal income ta return © have a Taxpayer Identification Number (TIN), including the taxpayer thei spouse (if married), and any dependents listed on the return. The types of TINS are:
+
+1. Social Security number (SSN)
+2. CUndividual taxpayer identification number (ITIN)
+3. Adoption taxpayer identification number (ATIN)'®
+
+Note: The personal and financial information = considered Sensitive and
+confidential,
+
+A preparer who wrongfully discloses a taxpayer's information could face civil and criminal charges.
+
+Generally, only US. citizens and lawiully admitted noncitizens authorized to work n the United States are eligible for a Social Security number.
+
+INGEST with a US, tax lability enerally have ITINS)
+
+A taxpayer with an ITIN is not eligible to receive Social Security benefits or the Earned Income Tax Credit. ITINS are for federal tax reporting anly and are not intended toserve any other purpose.
+
+Copel for + ed for ATI regests Fon WT, Application fo Tspeye Mention Number for Pending US Adoptions.
+

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+Example: Umberto is an Italian On January 20,2023, he inherited a rental property from his deceased aunt, Giuseppina, a green-card holder who was living in the U.S. On his accountant’s advice, Umberto decides to keep the rental property as a passive income
+source. He hires a management company to receive the rents and manage the property in his absence. Umberto requests an ITIN for tax reporting purposes. He will report his U.S. rental income on Form 1040-NR. He will not be taxed on his worldwide income, only his income from U.S. sources.
+
+Example: Kristal is a US. citizen living in Norway. In 2023, she met and married Trond, The couple plans to live in Norway. Trond does not plan to apply for US residency Kristal and Trond file jointly and treat Trond as a US. resident alien by attaching a
+statement to their joint return. To make this election, Trond must request an ITIN.
+
+ITIN Application Process
+
+Taxpayers who need a taxpayer identification number (ITIN) must fill out Form W-7, Application for IRS Individual Taxpayer Identification Number. Along with this form, taxpayers must provide documentation that proves their foreign status and verifies their identity.” There are three ways to apply for an ITIN, Using Form W-7, Using an IRS-authorized CRAs ASCRRAG ASULLCAALRT
+«in-person ata designated IRS Taxpayer Assistance Center
+
+A taxpayer can also engage the services of a CAA, or Certified Acceptance Agent,'® to request an ITIN. CAs can authenticate a passport and/or birth certificate for taxpayers who want to request an ITIN, but do not wish to mail their original documents to the IRS. All ITINs expire unless they are renewed
+
+Example: Adriana, a U.S. citizen with a Social Security number, currently resides in Mexico and is employed by an international manufacturing firm. She recently married Santino, a Mexican citizen, who has a daughter named Lucia from a previous marriage (both Santino and Lucia are Mexican citizens). Adriana and Santino decide to file their taxes jointly as a married couple and claim Lucia as a dependent. they need to apply for Individual Taxpayer Identification Numbers (TIN) for Santino and Lucia. Adriana may enlist the help ofa Certified Acceptance Agent (CAA) in obtaining these ITINs for her husband and stepdaughter.
+
+Note: Typically, the process for obtaining an ITIN involves submitting an application (Form W-7) by mail along with a taxpayer's initial tax return. This must be done on paper. The Form W-7 cannot be filed electronically. There are limited situations where a foreign person may apply for an ITIN without filing a tax return, such as when claiming tax treaty benefits or providing an ITIN for reporting purposes to a third party, such as a bank or financial institution. A full list of exceptions can be found in the Form W-7 instructions.
+
+1 When a taxpayer applies for an TIN, the Form W-7 must include original documentation such as: an original passport, birth certificate, or cortified copies of these documents from the suing agency. Notarized copies are no longer accepted. 18 4 Certified Acceptance Agent (CA) is an individual or organization that is authorized by the Internal Revenue Service to assist alien individuals and with obtaining ITINs. The IRS maintains a ist of CAs on its website
+
+oR
+

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+Adoption Taxpayer Identification Number (ATIN)
+
+TIN are designed or adopted children who are not yet lige or a Socal Security
+umber. An ATIN is requested using Form W-7A, Application for Taxpayer entiation Number for Pending US Adoptions. Fr an adopted child who does not have an SSN, a taxpayer may request an ATIN 5:
+
+‘The child is paced in the taxpayers home for egal adoption.
+The adoption Is a domestic adoption, or the adoption is a foreign legal adoption and the child has a permanent resident alien card o certificate of citizenship The taxpayer cannot obtain the child's existing SSN, even though he has made a reasonable 
+attempt to obtain ¢ from the birth parents, the placement agency, and other persons. 
++ The taxpayer cannot obtain an SSN for other reasons, such as th adoption not yet being final An ATIN issued for an adoptive child wil expire afte tu. ears from the date itis issued, although an extension can be requested, using 185. Eas 15100, Adoption Taxpayer Identification Number Extension Request. An ATIN cannot be used to obtain the Earned Income Tax Credit the Child Tax Credit, or the American Opportunity Tax Credit.
+Special Rules for a Deceased Child 1a child is born and dies within the same tax year and is not granted an SSN, the taxpayer may still claim that child as a dependent.
+
+Example: On October 9, 2023, Diane had a newborn son. Sadly, he faced health complications and passed away Just one week later. The child was issued both a birth certificate and a death certificate, but no Social Security number. When filing her taxes for 2023, Diane can still claim her son as a qualifying child. She will need to submit a paper return in order t do so Her son will still be considered a “qualifying child” for tax purposes, even though he only ived for a short time. The tax return must be filed on paper with a copy of the birth certificate or a hospital medical record attached. The birth certificate must show that the child was born alive; a stillborn infant does not qualify. The taxpayer should enter the word "DIED" in the space forthe dependents Social Security number on the tax return, Recordkeeping Requirements for Individuals Iti the responsibility of taxpayers, with or without the asistance of a tax preparer, to maintain copies oftheir ax returns and related records for as long as necessary or the administration of federal tax laws. Typically, it Is required that taxpayers retain coples of their tax returns and supporting documentation or at east three years from either the date they were filed or the due date, whichever
+slater, 
+
+There are no specific guidelines
+
+These include identifying sources of income, keeping track of expenses for deductions, documenting the cost and improvements made to owned property, substantiating items reported on tax returns in case of an audit, and aiding inthe accurate preparation of future tax returns. I cases of an IRS audi, i is the responsibily of the taxpayer to provide proof and documentation for ther claimed expenses. Even if a tax professional prepares and signs a tax return, the taxpayer is the one ultimately responsible for the accuracy of his
+
+2
+

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+The IRS allows taxpayers to maintain records in any way that will help determine
+the correct tax. Electronic records are acceptable as long as a taxpayer can reproduce the records in a legible format. Necessary records include Income: Forms W-2, Forms 1099, bank statements, pay stubs, brokerage statements, Schedules K-1.
+
+«Expenses: Sales slips, invoices, receipts, credit card statements, canceled checks or other proof of payments, written communications from qualified charities, Forms 1098 to support mortgage interest and real estate taxes paid if the taxes are paid through an impound account).
+
+«Home purchase and sale: Closing statements, HUD statements, purchase and sales invoices, proof of payment, insurance records, receipts for improvement costs.
+
+«Investments: Brokerage statements, mutual fund statements, Forms 1099-DIV. Basic Tax Forms for Individuals
+
+Form 1040: The Form 1040 is the primary tax form tofile
+tax returns. The Form 1040 includes three schedules:
+«Schedule 1, Additional Income and Adjustments to Income is used to report
+income not listed directly on Form 1040, such as taxable alimony,
+unemployment compensation, and gambling winnings. Schedule 1 includes adjustments
+to income, like student loan interest deduction, self-employed health insurance
+deduction, and the deduction for educator expenses.
+«Schedule 2, Additional Taxes is used to report additional taxes such as the
+alternative minimum tax, self-employment tax, or household employment taxes.
+« Schedule 3, Additional Credits and Payments has two main sections
+nonrefundable credits, and and refundable credits.
+Form 1040-SR is for use by seniors 65 or older. This form is
+
+essentially the same as the standard Form 1040 but is designed to be easier to read with a bigger font.
+
+Form 1040-NR is by nonresident aliens to report their US. source income.
+Form 1040-NR uses Schedules 1, 2, and 3, just like Form 1040. The 1040-NR is never used by US. citizens or US. residents. The IRS defines an “alien” as any individual who is not a US. citizen or U. national. A nonresident alien is an alien who has not passed the green card test or the substantial presence test. Form 1040-NR is used by foreign investors, as well as nonresident taxpayers who earn money while in the US.
+
+Example: Angelo, a Filipino citizen and world-famous boxer, receives permission to enter the U.S. on a special visa in order to participate in a champion boxing match. He earns a substantial income of $900,000 for his appearance, but only stays in the US. for six days before returning to his home country. As he is not eligible for a Social Security Number (SSN), Angelo must request an Individual Taxpayer Identification Number (ITIN) to report his U.S. earnings. Without the ITIN, he would face automatic backup withholding on his income. Thankfully, Angelos tax accountant requests the ITIN and correctly files his income taxes using Form 1040-NR, which only requires him to report the income he earned while in the United States and not his worldwide income.
+

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+Example: Ferdinand, a Canadian citizen, travels to the United States on a visitor's visa. During his visit, he goes to Atlantic City and happens to win $45,000 while playing Baccarat. Since Ferdinand is not a resident alien of the US for tax purposes and does not have an SSN, he falls under the category of nonresident alien. Generally, gambling winnings for nonresidentaliens are subject to a flat rate of 30% in taxes, and they are usually unable to claim deductions for gambling losses. However, a beneficial tax treaty exists between the US and Canada. Ferdinand chooses to request an ITIN, so he can file a Form 1040-NR to receive a partial refund of the US. taxes withheld from his gambling winnings.
+
+Form 1040-X, Amended US. Individual Income Tax Return: This form is used to correct errors ina previously filed Form 1040, Form 1040-SR, or 1040-NR. Form 1040-X can now be filed electronically. In 2023, taxpayers electronically filing amended returns may now choose direct deposit to obtain a faster refund.
+
+Federal Income Tax Rates
+
+An individual's federal taxable income is taxed at progressive rates The IRS groups individuals by brackets. For 2023, there are Seven axbrACKets 10%, and B79!
+2023 Federal Income Tax Brackets and Rates Taxrate Single Filers Married Filing Joint & | Head of Household Married Filing ass Separately
+
+10% $0t0$11,000 $0 t0$22,000 $01t0$15,700 $0t0$11,000
+12% $11,001 to $44,725 $22,00110$89.450 | $15701t0$59,850 | $11,001 to $44,725
+22% $4472610595375 | $89.451105190750 | $5985110§95350 | $44,726 10895375
+24% | $95376t0$182,100 | $190,751t0 $364,200 | $95,351 0 $182,100 | $95,376 to $182,100
+320% | $182,101t05231250 | $364.201t0 $462,500 | $182,101t05231250 | $182,101 t0 $231,250
+350 | $231251t08578125 | $462501t0$693,750 | $231.251t0 576,100 | $231.251 t0 $346,875
+37% $578,126 or more $693,751 ormore | $578101ormore | $346,876 or more
+
+Example: Melissa is unmarried, and she earned $32,000 of taxable income in 2023. This means she is in the 129% tax bracket. But that does not mean she will pay 12% on all her income. Instead, she would Pay 10% on the first $11,000 plus 129 on the remaining amount. a “parallel tax” called the alternative minimum tax (AMT), Taxpayers must pay either the regular tax or the AMT, depending on whichever amounts to the greater amount of tax,
+

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+‘The normal due date is April ICI April 15 falls ona Saturday, Sunday,
+or legal lolicay; tie due date is extended until the est business day.
+
+A tax return is considered filed on time” if the envelope is properly addressed, postmarked, and
+deposited in the mail by the due date. if a tax return is postmarked on April 15 but does
+notarrive at an IRS service center until April 30, the IRS must accept the tax return
+
+the “mailbox rule.” E-filed tax returns are given an “electronic postmark”
+in cases where a tax returns filed close
+to the deadline, it is highly advisable for a taxpayer to pay for proof of mailing or certified mail.
+
+Example: Seraphina is an enrolled agent who specializes in handling tax returns. One of her clients,
+Watson, is a single father to his 14-year-old daughter, Emily, and provides all financial support for her.
+On April 15, 2024, Seraphina attempts to electronically file Watson's 2023 tax return but it is rejected
+due to someone else already claiming Emily as a dependent. Watson suspects that his estranged ex-
+wife may have tried to claim their daughter, but he has no way of confirming or contacting her. Upon
+realizing the issue cannot be resolved electronically, Seraphina advises filing a paper return instead.
+She prints out the necessary forms for Watson and he signs them with an original ink signature before
+they are sent via certified mail before the post office closes. The return is considered timely and
+undergoes regular processing. Approximately eight weeks later, Watson receives his full refund.
+
+If a taxpayer cannot file by the due date, the taxpayer may request an extension by filing Form
+
+A868, Application for Automatic Extension of TimeNtoNile] which may be filed electronically. The
+
+extension must be filed by the original due date. An extension grants an additional six months to file a
+
+tax return,
+Note: ‘extension gives a taxpayer extra time toile it does ot extend the time tg
+ay TAXYES MUSESUMAEADAYIINES by the original deadline.
+
+I
+
+Federal Disaster Areas: Taxpayers in [ESlyECTeAMISAStERaTEASIEMANSASIE)Iae
+ranted postponements to fileand pay their taxc§ and to make estimated payments. The
+IRS [AISO EAE Ares Ananya OEE PAYRENUDEAIES that apply to taxpayers in these
+disaster areas. This type of tax relief generally includes:
+
++ Individuals and businesses [EAIENARISASERTE
+
++ Those whose tax records are [oEATEUINEISASIEAER] and
+
+«Relief workers whore working in the disaster area,
+
+A taxpayer does not have to be physically located in a federally declared disaster area to qualify as
+an “affected taxpayer.” INPAYETSTSRISONONSIETEANAMECtea) INEINEEORIS necessary to meet a
+filing or payment deadline postponed during the relief period AEIOGIEANNAEOVERENISISIERATES.
+Therefore, disaster relief also applies to tax preparers (and their clients) who are unable to file returns
+or make payments on behalf of their clients because of a disaster.
+
+30