Form 1040 Part 2: Investment, Retirement and Benefit Income


More and more people have started investing in their future by starting their retirement planning early, and more and more people are reaching retirement age. As a result, tax and accounting professionals will need to know how to help their clients with how to account for their investment, retirement and benefit income through their tax filing.

This course reviews the reporting of investment income received in the form of interest and dividends, as well as income received by taxpayers who have either retired from the workforce or are unable to work because of illness or injury. It will review the different types of sickness and injury benefit plans and discuss the tax treatment given to each. Income from retirement plans, pensions and annuities are also discussed and the final chapter consists of a discussion of Social Security and Railroad Retirement Benefits, in which the method for determining the taxability of these types of benefits is presented.

Learning Objectives

After completing this course, students will be able to:

  • identify the tax treatment given to benefits received under disability income plans, workers compensation; and other sickness and injury benefit plans
  • identify interest income that is taxable and nontaxable, and recognize the correct method for reporting taxable interest on a tax return
  • identify the tax treatment given to dividends, capital gain distributions and other distributions received from a corporation or mutual fund
  • identify the tax treatment given to employee pension and annuity benefits, disability retirement benefits and periodic payments received under a privately-purchased commercial annuities
  • calculate the amount of a taxpayer's Social Security or Railroad Retirement benefits that may be subject to income taxation and identify any deductions that may be taken in connection with those benefits

Tax Year 2023

Designed For

Newer tax professionals and those looking for a basic review of form 1040 tax issues

Advanced Preparation


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