Analyzing 1040s for Financial Planning Opportunities

The demographics, schedules filed, filing status, and level of income accumulated to prepare a client's individual income tax return point to opportunities for taxpayers to better prepare for the future. Tax practitioners can use this data to provide financial planning recommendations and better serve their clients.

The AICPA recently updated its checklist "Analysis of a tax return for financial planning opportunities." Beginning with page 1 of Form 1040, it suggests that dependents on a tax return begs the question, "Has the client considered gift and estate planning opportunities for his or her dependents." This conversation could uncover additional planning needs, including a 529 plan, life insurance, or the importance of updating all beneficiary designations. A taxpayer's occupation listed could suggest a need for professional liability or disability insurance. A client's age or birthdate may indicate the need to verify wage history with the Social Security Administration or RMD planning.

A client's investment income on Schedules B and D might warrant a discussion of FDIC limits, tax-exempt investments, or foreign bank account reporting requirements. Tax practitioners working with individual income tax clients should explore the benefits and value analyzing a taxpayer's 1040 can add to the client relationship.

Listen as our Certified Financial Planner walks tax practitioners through the forms, schedules, and lines of Form 1040 to identify areas that tax professionals can address to assist in planning for the future.

1. Analyzing Form 1040: introduction
2. Demographics
3. Income
4. Adjustments to income
5. Schedule B
6. Schedule C
7. Schedule D
8. Schedule E
9. Schedule A
10. Other considerations

The speaker will cover these and other critical issues:

• Planning considerations for taxpayers with rental properties on Schedule E
• How a client's location impacts his financial planning
• When and how Social Security planning should be addressed for taxpayers
• How certain items on Form 1040 indicate a need for additional estate planning
• Investment considerations relative to items on Schedule B

Learning Objectives

After completing this course, you will be able to:

• Determine how a taxpayer's age affects current financial planning needs
• Decide when Form 1040 could indicate a need for additional estate planning
• Ascertain when a client's data points out a need for RMD planning
• Identify financial planning opportunities based on items reported on Schedule B

• Field of Study: Taxes
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of individual income taxation, including itemized deductions, individual income tax credits, net operating loss limitations including carrybacks and carryforwards.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).