Overview

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This course provides a comprehensive overview of United States (US) individual taxation and policies, tailored for beginner learners and career reskillers in finance. Participants will explore key historical events that have shaped US tax policy, including the significance of the 16th Amendment and the evolution of federal income tax rates. The course will also cover the impact of major tax reforms on individual taxpayers, the classification of taxable income, and the calculation of tax liability. Learners will gain insights into deductions, including above-the-line and below-the-line deductions, as well as the role of the IRS in tax administration. The course will address common tax credits, the implications of different business entities, and the process for amending a federal income tax return. By the end of the course, participants will be equipped to prepare and complete a comprehensive individual federal income tax return.

Syllabus

Introduction to Course and History of US Tax Policy

Start here to understand how United States (US) individual taxation developed and why it looks the way it does today. This module connects landmark moments, constitutional changes, and major reforms to the numbers and rules that affect taxpayers and finance professionals. You’ll see how historical shifts shaped revenue sources and the policy tradeoffs behind them.

The Role of the IRS

This module explains who runs the tax system and how compliance is enforced. You’ll learn what the IRS does day-to-day, what triggers audits, the rights taxpayers have, and how common penalties and amendment processes work in practice.

Gross Income

This module clarifies what counts as taxable income and how the tax base is constructed. You’ll define gross income, recognize common income types, compute adjusted gross income (AGI), and understand how AGI and other items feed into a taxpayer’s overall tax liability.

Deductions

Learn the basics of deductions, including above-the-line deductions and below-the-line deductions. Dive into the classifications of each and which type of deduction may present the better taxpayer benefit. Explore the most-used deductions and credits that reduce taxable income and tax owed. You’ll learn when to take the standard deduction versus itemizing, common credits, and special treatments for charitable giving, education expenses, and health savings accounts.

Capital Assets, Tax Credits, and Nontaxable Exchanges

Explore the most-used tax credits that reduce taxable income and tax owed. You’ll learn how capital assets work, including basis recovery, calculating gain or loss, and unique exceptions that create nontaxable events.

Passive Activity Rules and the Alternative Minimum Tax

Delve into the creation and application of the passive activity rules and alternative minimum tax. Understand the historical context for the creation of these rules and their practical application today.

Business Entities and Passthroughs

Many individual taxpayers also run businesses. This module introduces the IRS-recognized business structures and the tax consequences individuals face when operating as sole proprietors, partners, or LLC owners. The focus is on how income flows and is reported for personal tax returns.

Complete an Individual Tax Return

Demonstrate mastery by preparing a complete, authentic federal individual tax return for a realistic taxpayer scenario. This capstone integrates income recognition, AGI adjustments, deductions and credits, business income considerations, and tax calculations to produce a finished Form 1040 and supporting schedules.