1040 Preparation and Planning 4: Gross Income: Interest, Dividends, and Other Ordinary Income (2023)

Author: Barbara Weltman, Sidney Kess, Greg White

CPE Credit:  3 hours for CPAs
3 hours Federal Tax Related for EAs and OTRPs
3 hours Federal Tax Law for CTEC

This fourth course in the 1040 Preparation and Planning series covers gross income from interest, dividends, Social Security, alimony, unemployment benefits, cancellation of debt, and other income. A case study that walks you through calculating reportable income is included in this course.

This three CPE hour course, the fourth in the series, covers gross income from a number of sources, including interest, dividends, Social Security, alimony and other types of ordinary income. Tax developments, including the Consolidated Appropriations Act, 2022, the Inflation Reduction Act of 2022, and other tax legislation, IRS pronouncements, and court decision, are extensive. They impact 2022 tax year returns that will be filed during the 2023 filing season and refund opportunities for earlier, “open” years; as well as point the way to strategic planning in 2023 and beyond. This course brings the tax preparer "up-to-speed" in preparing 2022 tax returns for the 2023 filing season.

Publication Date: September 2022

Designed For
CPAs, Tax Return Preparers, Enrolled Agents, Tax Attorneys, Tax Practitioners

Topics Covered

  • Items Includible in Gross Income
  • Introduction to Interest Income
  • Timing of Interest Income
  • Interest Income from REMICs and CMOs
  • Refunds on Adjustable Rate Mortgages
  • Imputed Interest Income from Below-Market Loans
  • Interest Income from Foreign Financial Accounts
  • Interest Paid by the U.S. Government
  • Treasury Inflation - Indexed Debt Securities
  • Interest Income on U.S. Government Savings Bonds
  • College Savings Bonds
  • Interest on State and Municipal Obligations
  • Dividends
  • Tax Rates on Qualified Dividends
  • Reporting Dividends on the Tax Return
  • Foreign Dividends
  • Stock Dividends
  • Stock Rights
  • Constructive Dividends
  • Liquidating Dividends
  • Dividends on Insurance Policies
  • Distributions from Savings Accounts
  • Mutual Fund Dividends
  • Real Estate Investment Trust (REIT) Dividends
  • Tax Refunds, Credits, or Offsets of State and Local Income Taxes
  • AMT and the Refund
  • Alimony
  • Child Support
  • Property Settlements
  • Unemployment Benefits
  • Social Security Benefits
  • Other income
  • Cancellation of a Debt
  • Hobby Income
  • Taxable Distributions from Certain Tax-Advantaged Accounts
  • Calculations

Learning Objectives

  • Report interest income
  • Identify qualified dividends
  • Figure the includible portion of Social Security benefits
  • Describe the taxation of alimony under pre-2019 divorces
  • Describe the taxation of unemployment benefits
  • Distinguish cancellation of debt income that is taxable from COD income that is excludable
  • List "other income"
  • Identify the backup withholding rate for 2022
  • Identify the number of Applicable Federal Rates (AFRs) with respect to certain below-market loans
  • Identify the tax rate on interest on U.S. Treasury bills, notes, and bonds
  • Identify the dividend tax rate for joint filing taxpayers with taxable income over $517,200 in 2022
  • Identify what percentage of interest on a personal injury award is subject to tax
  • Identify what percentage of interest on U.S. government securities is fully taxable


Instructional Method

NASBA Field of Study
Taxes (3 hours)

Program Prerequisites

Advance Preparation

Registration Options
Regular Fee $83.00

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