1040 Exam Prep Module V: Adjustments to Income or Deductions by Norma Wahnon - Read Online
1040 Exam Prep Module V
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The 1040 Exam Prep package is the most practical and efficient set of tools available to help candidates prepare for the Registered Tax Return Preparer (RTRP) competency examination.

The tax return preparer industry is changing. The market is demanding more accountability from professional tax return preparers. The Internal Revenue Service responded to this reality and has introduced new regulations that usher in a new era on how it will oversee the tax return preparation industry. Mandatory tax return preparer registration, competency examination requirement, continuing education, and higher ethical standards are now part of the new rules of the game.

The 1040 Exam Prep e-books can help candidates planning to take the RTRP Competency Examination to prepare for the exam by providing the material they need to review in several formats that meet their unique preferences and convenience.

The 1040 Exam Prep is a comprehensive, effective and practical set of study materials that include e-Books, slide presentations, mind-maps, and mp3 recordings, designed to help candidates review quickly, grasp and retain the concepts they need to know in preparation for the RTRP competency exam. The 1040 Exam Prep material:

•Empowers the exam candidates in their review with bite-size manuals and visual aids.
•Builds a strong knowledge foundation, confidence, and stamina to succeed in the exam room.
•Allows you to review no more than what you need to know for the exam. The tax law is huge; you don’t want to over-prepare.
Practical, simple and affordable, the 1040 Exam Prep Study Guide for Tax Preparers will require little extra effort on your part to search for and analyze complex tax laws and regulations, because we have done that for you and we have summarized what you need to know, to help you pass the exam.

Published: Norma Wahnon on
ISBN: 9781466121720
List price: $3.99
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1040 Exam Prep Module V - Norma Wahnon

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The Form 1040 formula, works with two main groups of deductions: For AGI or above the line and From AGI or below the line . The For AGI or above the line group is located on page 1 of Form 1040. The From AGI or below the line group is located on Page 2 of the Form 1040.

The AGI (Adjusted Gross Income) is reported on the last line of Page 1 of Form 1040. To understand how deductions and losses are grouped as indicated above it is important to analyze Section 62, Section 212, and Section 162 of the Internal Revenue Code.

Following is a simplified review of Section 62 and Section 212.


Adjusted Gross Income is a very important concept when applying the Form 1040 Formula because it affects the amount of allowable deductions such as those for charitable contribution, casualty losses, medical expenses, and miscellaneous other deductions. Deductions classified as above the line are deducted from gross income to obtain the adjusted gross income, which is entered in the last line of the Page1 on Form 1040 and repeated on the first line of