1040 Preparation and Planning 3: Gross Income: Compensation and Fringe Benefits (2023)

Author: Barbara Weltman, Sidney Kess, Greg White

CPE Credit:  2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC

This on-demand course, the third in the 1040 Preparation and Planning series, covers gross income and different inclusions and exclusions, as well as reporting wages and benefits, taxable benefits, and benefits excluded from income.

This two CPE hour course, the third in the series, covers compensation and fringe benefits. Tax developments, including the Consolidated Appropriations Act, 2022, the Inflation Reduction Act of 2022, and other tax legislation, IRS pronouncements, and court decisions, are extensive. They impact 2022 tax year returns that will be filed during the 2023 filing season and refund opportunities for earlier, “open” years; as well as point the way to strategic planning in 2023 and beyond. This course brings the tax preparer "up-to-speed" in preparing 2022 tax returns for the 2023 filing season.

Publication Date: October 2023

Designed For
CPAs, Enrolled Agents; Tax Return Preparers; Tax Attorneys; Tax Practitioners

Topics Covered

  • Compensation for Personal Services
  • Form W-2 Reporting and Withholding
  • Foreign Earned Income Exclusion
  • Life Insurance Premiums Paid by Employers
  • Meals and Lodging Furnished to Employee
  • Employer's Contributions to Employee Retirement Plan
  • Pensions and Retirement Pay Received
  • Loans from Qualified Retirement Plans
  • Medical Insurance and Reimbursement Plans
  • Dependent Care Assistance Plans
  • Employer-Provided Educational Assistance
  • Employer-Provided Adoption Assistance
  • Other Fringe Benefits
  • Clergy's Rental Allowance and Living Quarters
  • Veterans and Members of the Armed Forces

Learning Objectives

  • Report compensation in whatever form it is paid
  • Discuss entries on Form W-2 as it relates to the income tax return
  • Identify various types of employee benefits plans
  • Recognize which benefits are taxable and which benefits are excludable from income
  • Identify up to what amount can be excludable from gross income with respect to dependent care assistance plans in 2022
  • Identify a common fringe benefit that is not taxable to the employee
  • Identify what percentage of rewards and bonuses received (such as holiday or year-end bonuses) in consideration of services rendered are subject to tax


Instructional Method

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
Basic understanding of Federal Tax Law

Advance Preparation

Registration Options
Regular Fee $67.00

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