Form 1040 Part 2: Investment, Retirement and Benefit Income

Study Level:  Basic
Delivery Method:  Online self-study
Provider of Record: WebCE
Tax Year: 2018
Field of Study: Taxes
Prerequisite: None

Course Description:
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.

The course commences with a review of the different types of sickness and injury benefit plans and discusses the taxability of each. Income from retirement plans, pensions and annuities is discussed next and then the final chapter of the course 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.

Topics include:
  • Sickness and Injury Benefits
  • Interest and Dividend Income
  • Retirement Plans, Pensions and Annuities

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
  • identify interest income that is taxable and nontaxable, and state 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 annuity
  • 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

Revised: June 2018

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