Federal Taxation I: Individuals, Employees, and Sole Proprietors from Coursera

This course is the first course in a five-course US Federal Tax Specialization. It covers and focuses on the U.S. federal tax system as it relates to individuals, employees, and sole proprietors. Key concepts covered include gross income and items that are statutorily included or excluded in it, personal and business expenses that qualify as tax deductions, and the differing tax treatments for employees versus self-employed taxpayers. Unlike many other introductory courses in tax and as part of this course’s comprehensive wrap-up, learners will be provided with practical and tangible experience reporting both income and expenses on the main individual tax return used in the US, Form 1040.

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What's inside

Syllabus

INTRODUCTION TO THE COURSE

In this module, you will become familiar with the course, your instructor and your classmates, and our learning environment. This orientation will also help you obtain the technical skills required to navigate and be successful in this course.

MODULE 1: AN INTRODUCTION TO TAXATION

In this module, you will be introduced to the different kinds of taxes faced by US taxpayers and the US federal income tax structure. The origin of tax law and its constitutionality is discussed along with a brief history of the different changes in rates that have occurred since the 16th Amendment was passed. Finally, we will discover the three different sources of new tax laws and rules.

MODULE 2: COMPUTING THE TAX

In this module, we will take a deeper dive into each part of the US federal income tax structure, with a focus on what is included in gross income. We will learn how for-AGI deductions reduce gross income to generate adjusted gross income, or AGI, and why AGI is an important number that determines the floors and ceilings of many from-AGI deductions. We will also discuss who qualifies as a dependent. We will wrap up the module with a discussion of the actual calculation of the tax as well as filing status and filing requirements.

MODULE 3: GROSS INCOME

In this module, you will take a deeper dive into gross income, specifically regarding statutory inclusions. Congress, the courts, and the IRS have specific rules on whether and when certain income items are included as gross income. These rules provide clarification in situations where it is unclear whether money or property received should actually be included as income.

MODULE 4: GROSS INCOME: EXCLUSIONS

In this module, you will take a deeper dive into gross income, specifically regarding statutory exclusions. Congress, the courts, and the IRS allow exclusions of money or property received by the taxpayer for various reasons.

MODULE 5: DEDUCTIONS AND LOSSES: IN GENERAL

In this module, you will learn about deductions, which is the term used in tax to describe an expense that is allowed to reduce a taxpayer’s tax liability. You will discover what adjusted gross income is, why it is important, and how to calculate it. You will also learn the difference in tax treatments for special types of activities, such as hobbies and rentals.

MODULE 6: BUSINESSS DEDUCTIONS

In this module, we discuss several unique situations where the same expense may or may not be deductible, dependent on the facts and circumstances surrounding the situation. We will also learn about another from AGI deduction, the new 20% deduction for qualified business income. Finally, we will discuss other business deductions such as bad debts and net operating losses.

MODULE 7: ITEMIZED DEDUCTIONS AND RETIREMENT PLANS

In this module, we first turn our focus to expenses that qualify as itemized deductions, which are a from AGI deduction. To finish off this module, we’ll switch back to discussing income and situations where taxpayers can elect to delay recognition of income, such as saving for retirement, as well as situations where taxation of the annual earnings of those retirement savings are either deferred or permanently excluded from income.

MODULE 8: COMPREHENSIVE EXAMPLE

In this module, you will review the Comprehensive Example video and then learn to apply the concepts to a tax return problem.

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Develops a holistic understanding of the US federal tax system by teaching computing the tax, gross income inclusions/exclusions, and deductions/losses

Examines the US federal tax system as it relates to individuals, employees, and sole proprietors, thus making it relevant to a wide range of learners

Teaches learners to prepare a tax return on Form 1040, a tangible and practical skill

Taught by Matthew Hutchens, a credentialed instructor in the field of taxation

Part of a five-course specialization in US Federal Tax, thus offering learners the opportunity to deepen their knowledge

Requires learners to have a basic understanding of accounting and tax principles

Reviews summary

Well-received federal taxation i course

Students largely praise this Federal Taxation I course, describing it as excellent and comprehensive. They appreciate the engaging videos, clear explanations, and practical examples. The instructors are knowledgeable and effective in conveying complex concepts. Students also value the practical exercises, such as the tax preparation practice in Week 8, which help reinforce their understanding. Overall, students say this course provides a strong foundation for understanding federal taxation and preparing tax returns.

Students feel that the course provides comprehensive coverage of the basics of federal taxation.

"This course it was very helpful"

"Excellent preparatory course fro those preparing their own taxes or getting in the Taxation Industry."

Students find the practical exercises, such as the tax preparation practice, to be valuable in reinforcing their understanding.

"The most practial part comes in Week 8 where you apply what you have learnt into pracitce."

"This online course is one of the best I have taken, it's well organized and structured, it covers the major parts about individual taxation..."

Students are impressed by the instructors' knowledge and ability to convey complex concepts in an understandable way.

"The instructors are brilliant and manage to convey somewhat convoluted rules in a clear succinct manner."

"The course was informative and educational, while also keeping the student engaged in the material as well as being up to date and relevant."

Students appreciate the clear and concise explanations of complex tax concepts.

"The concepts were very clearly explained and gave a clear idea as to what components goes into preparation of Tax Form 1040."

"I really enjoyed listening to the lectures and going over each lesson. It was very well prepared with examples and the videos were very helpful."

Students find the videos to be engaging and helpful, particularly the practical examples.

"The screencasts were engaging and clear, and I especially liked the practical examples."

"The videos were well presented and easy to follow..."

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Federal Taxation I: Individuals, Employees, and Sole Proprietors with these activities:

Review US Tax Code

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Review the Internal Revenue Code and other relevant tax laws to refresh your knowledge of the legal framework governing US taxation.

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Access the IRS website and download the current Internal Revenue Code.
Focus on reviewing the sections of the code that are most relevant to individuals, employees, and sole proprietors.

Connect with Tax Professionals

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Establish connections with tax professionals, such as accountants or attorneys, to seek guidance and insights on tax-related matters.

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Attend industry events and conferences.
Reach out to professionals in your network for introductions.
Join professional organizations related to taxation.

Review previous tax-related coursework or materials

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Strengthen your foundation in tax concepts by reviewing previously acquired knowledge, ensuring that you are well-prepared for the course material.

Browse courses on Taxation

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Gather any relevant textbooks or notes from previous tax-related courses
Review key concepts such as gross income, deductions, and tax rates
Identify areas where you need additional clarification or practice

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Join a study group to discuss tax topics

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Enhance your understanding and retention of tax concepts by engaging in discussions with peers in a study group setting.

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Find or form a study group with other students in the course
Choose a specific tax topic to focus on for each session
Prepare questions and discussion points to bring to the session
Actively participate in the discussion and share your insights

Use online tutorials for tax-related concepts

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Supplement your learning by exploring online tutorials that provide clear and concise explanations of tax-related concepts.

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Identify the specific tax concept you need clarification on
Search for online tutorials or videos that cover that concept
Review the tutorial and take notes if necessary

Participate in Online Discussion Forums

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Engage in discussions with peers in online forums to exchange ideas, ask questions, and share insights related to the course content.

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Join the course discussion forum.
Actively participate in discussions by posting questions, responding to others, and sharing your perspectives.

Complete weekly exercises on tax law

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Reinforce your understanding of tax law by continuously practicing the concepts covered in class.

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Review the lecture material and notes
Attempt the practice exercises for that week
Check your answers against the answer key provided

Create a visual representation of tax concepts

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Enhance your understanding and retention of tax concepts by creating visual representations such as diagrams, charts, or infographics, promoting a deeper level of engagement.

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Choose a specific tax concept or topic to visualize
Gather relevant data and information
Select a suitable visual representation format
Design and create your visual representation
Share your visualization with others for feedback and discussion

Practice Tax Return Preparation

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Complete practice tax return preparation exercises to gain hands-on experience in reporting income and expenses on Form 1040.

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Obtain practice tax return forms from the IRS website.
Review the instructions for completing Form 1040.
Complete several practice tax returns based on provided scenarios.

Develop a mock tax return for a given scenario

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Apply your knowledge of tax concepts and IRS regulations by preparing a mock tax return for a given scenario, enhancing your practical skills.

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Gather the necessary information and documents
Calculate the taxable income and deductions
Determine the appropriate tax credits and exemptions
Complete the tax return using tax software or manually
Review and finalize the return

Create a Tax Planning Portfolio

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Develop a tax planning portfolio that outlines strategies to minimize tax liability for a specific individual or scenario.

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Research and identify relevant tax laws and regulations.
Gather and analyze financial information for the individual or scenario.
Develop and evaluate potential tax planning strategies.
Create a written tax planning portfolio summarizing your findings and recommendations.

Contribute to Tax-Related Open Source Projects

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Get involved in open source projects related to taxation, such as developing or improving tax software, to deepen your understanding and contribute to the community.

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Identify open source projects in the field of taxation that align with your interests.
Join the project community and contribute in areas where your skills can be utilized.
Participate in discussions, provide feedback, and contribute to the development or improvement of the project.

Design a Tax-Efficient Investment Strategy

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Develop a tax-efficient investment strategy that aligns with the financial goals and risk tolerance of a specific individual or scenario.

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Research and identify tax-advantaged investment vehicles.
Assess the individual's or scenario's financial goals and risk tolerance.
Design a diversified investment portfolio that meets the individual's or scenario's needs while minimizing tax liability.
Create a written investment strategy summary outlining your recommendations.

Career center

Learners who complete Federal Taxation I: Individuals, Employees, and Sole Proprietors will develop knowledge and skills that may be useful to these careers:

Tax Collector

Tax Collectors are responsible for collecting taxes from individuals and businesses. This course can help Tax Collectors succeed by providing them with a strong understanding of the U.S. federal tax system, including the rules and regulations governing individual, employee, and sole proprietor taxation.

See salaries and explore the career path for Tax Collector

Tax Preparer

Tax Preparers help individuals and businesses file their tax returns. This course can help Tax Preparers succeed by providing them with a thorough understanding of the U.S. federal tax system, including the rules and regulations governing individual, employee, and sole proprietor taxation.

See salaries and explore the career path for Tax Preparer

Tax Auditor

Tax Auditors examine tax returns to ensure that they are accurate and complete. This course can help Tax Auditors succeed by providing them with a strong understanding of the U.S. federal tax system, including the rules and regulations governing individual, employee, and sole proprietor taxation.

See salaries and explore the career path for Tax Auditor

Tax Analyst

Tax Analysts help businesses and individuals understand their tax obligations and plan for the future. This course can help Tax Analysts succeed by providing them with a comprehensive understanding of the U.S. federal tax system, including the rules and regulations governing individual, employee, and sole proprietor taxation.

See salaries and explore the career path for Tax Analyst

Tax Accountant

Tax Accountants help individuals and businesses manage their tax obligations. This course can help Tax Accountants succeed by providing them with a comprehensive understanding of the U.S. federal tax system, including the rules and regulations governing individual, employee, and sole proprietor taxation.

See salaries and explore the career path for Tax Accountant

Small Business Owner

Small Business Owners are responsible for all aspects of running their businesses, including managing their finances and paying taxes. This course can help Small Business Owners succeed by providing them with a strong understanding of the U.S. federal tax system, including the rules and regulations governing sole proprietorships.

See salaries and explore the career path for Small Business Owner

Estate Planner

Estate Planners help individuals and families plan for the distribution of their assets after death. This course can help Estate Planners succeed by providing them with a strong understanding of the U.S. federal tax system, including the rules and regulations governing estate and gift taxation.

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Trust Officer

Trust Officers manage trusts and other financial accounts for individuals and families. This course can help Trust Officers succeed by providing them with a strong understanding of the U.S. federal tax system, including the rules and regulations governing trusts and estates.

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Entrepreneur

Entrepreneurs start and run their own businesses. This course can help Entrepreneurs succeed by providing them with a strong understanding of the U.S. federal tax system, including the rules and regulations governing sole proprietorships. Sole proprietors are individuals who own and operate their own businesses.

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Financial Advisor

Financial Advisors help individuals and businesses plan for their financial future. This course can help Financial Advisors succeed by providing them with a strong understanding of the U.S. federal tax system, including the rules and regulations governing individual and business taxation.

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Freelancer

Freelancers are self-employed individuals who provide services to clients on a project-by-project basis. This course can help Freelancers succeed by providing them with a strong understanding of the U.S. federal tax system, including the rules and regulations governing sole proprietorships.

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Loan Officer

Loan Officers help individuals and businesses obtain loans. This course may be useful for Loan Officers who want to learn more about the tax implications of different types of loans.

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Real Estate Agent

Real Estate Agents help individuals and businesses buy and sell real estate. This course may be useful for Real Estate Agents who want to learn more about the tax implications of different types of real estate transactions.

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Mortgage Broker

Mortgage Brokers help individuals obtain mortgages. This course may be useful for Mortgage Brokers who want to learn more about the tax implications of different types of mortgages.

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Insurance Agent

Insurance Agents help individuals and businesses purchase insurance policies. This course may be useful for Insurance Agents who want to learn more about the tax implications of different types of insurance policies.

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