2023 California 5-Hour CE Course


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Topics Include:

  • Community Property
  • Retirement Income and Other Income Types
  • Residency
  • Depreciation
  • Self-employment
  • California Business Entities

Product Description

1. COMMUNITY PROPERTY Upon completion of this chapter, students will understand community property, community income, and separate property. Students will be able to determine how community and separate income should be reported in a community property state, regardless of whether the taxpayer lives in a community or separate property state. In addition, students will determine how filing a separate return impacts federal and California exemptions, deductions, taxable income, and credits. Students will learn how to report state taxes withheld from California and other states. Lastly, students will be able to identify certain situations where prenuptial agreements are not enforceable.

2. RETIREMENT INCOME AND OTHER INCOME TYPES Upon completion of this chapter, students will understand the differences in how retirement and other income distributions are taxed by California compared to federal law. Students will be able to identify the differences and report the necessary adjustments to California taxable income.

3. RESIDENCY Upon the completion of this chapter, students will be able to determine whether a taxpayer is a resident, a part-year resident, or a nonresident of California for tax purposes. They will recognize when the safe harbor “rule” applies to taxpayers domiciled in California. Students will understand how an individual’s residency status determines the manner in which California taxes income and which form to use. Finally, students will understand the residency rules which apply to military servicemembers and their spouses domiciled in and outside California.

4. DEPRECIATION Upon completion of this chapter, students will understand how the differences between California and federal depreciation and amortization can affect the basis of property, depreciation deductions, and business expenses, thereby affecting business income (loss), capital gains (losses), and other items on the California tax return. Students will learn how to calculate California depreciation amounts and report differences from federal amounts on Schedule CA (540 or 540NR). Students will be able to determine if and what amount of the cost of property placed in service during the taxable year may be expensed.

5. SELF-EMPLOYMENT INCOME Upon completion of this chapter, students will understand the differences in the calculation of self-employment income between California and federal tax law. Students will recognize when a basis or business deduction adjustment is necessary on the California return. Students will be introduced to business credits available to self-employed individuals. Students will learn the reporting rules of NOL carryforwards and carrybacks. Students will be able to apply Employment Development Department (EDD) guidelines to determine whether a worker is an employee or an independent contractor and understand specific statutes that define who is a statutory employee. Finally, students will learn about independent contractor reporting requirements.

6. CALIFORNIA BUSINESS ENTITIES Upon completion of this chapter, students will understand the different types of California business entities as they relate to filing a California tax return. Common business tax law concerns regarding topics such as NOLs, nonresident withholding, employee versus contractor issues, and statutory employees are included in this Chapter. Students will be able to describe employer registration and reporting requirements as they relate to the Employment Development Department (EDD). Finally, students will identify an employer and recognize the various kinds of employment taxes employers are required to withhold from employees. New lecture videos reinforces concepts! Topics: Community Property and Separate Property Determining Residency Status

CTEC #1071-CE-3167 NASBA #103388

Continuing Education FAQs

What are my Continuing Education (CE) requirements for the IRS?

There are no CE requirements to maintain your Preparer Tax Identification Number (PTIN) with the IRS.

For the IRS’s Annual Filing Season Program (AFSP), you must complete 18 hours of CE by December 31st annually, using an IRS Approved Provider (Don’t worry, The Income Tax School is approved!). These 18 hours must be made up of:

    • 10 hours federal tax law
    • 6 hours Annual Federal Tax Refresher (AFTR) course with a comprehension test
    • 2 hours ethics education

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What are my CE requirements as an IRS Enrolled Agent (EA)?

In order for Enrolled Agents to keep their designation from the IRS, they must obtain at least 72 hours of CE credits every three years (based on their renewal cycle). Of these 72 hours, a minimum of 16 hours must be completed each year, and of these 16 hours per year, a minimum of two hours must be on ethics.

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What are my CE requirements to renew my registration with the California Tax Education Council (CTEC)?

California residents must provide an active PTIN, maintain a $5,000 tax preparer insurance bond, and complete 20 hours of CE by October 31st each year to renew their registration with the California Tax Education Council (CTEC). They must also complete. These 20 hours must be made up of:

    • 10 hours federal tax law
    • 5 hours California state law
    • 3 hours federal tax updates
    • 2 hours ethics education

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Am I exempt from the Annual Federal Tax Refresher (AFTR) course?

Tax preparers who have successfully completed one of the following national or state tests would be exempt from taking the AFTR course with a comprehension test.

  • Registered Tax Return Preparers (RTRP)
  • California and other state based return preparer testing programs
  • Accredited tax preparers through Accreditation Council for Accountancy/Taxation
  • Part 1 of the Special Enrollment Exam during 2 year eligibility window
  • Successful VITA program reviewers and instructors

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What if I’m a credentialed tax professional or in the exempt group above and want to qualify for the AFSP?

Credentialed tax professionals (CPAs, attorneys, Enrolled Agents, Enrolled Retirement Plan Agents, and Enrolled Actuaries) or the exempt group listed in the section above must have 15 hours of CE from an IRS Approved Provider to qualify for the AFSP annually. No CE credit will be given to Enrolled Agents for completing an AFTR course. The 15 hours of CE must include the following:

  • 10 hours federal tax law topics
  • 3 hours federal tax updates
  • 2 hours ethics education

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Do you report my CE credits to the IRS and/or CTEC?

Yes. The Income Tax School reports CE credits to the IRS once per quarter for the first 3 quarters of the calendar year.

  • CE credits earned from January 1st – March 31st: reported to IRS April 1st.
  • CE credits earned from April 1st – June 30th: reported to IRS July 1st.
  • CE credits earned from July 1st – September 30th: reported to IRS October 1st.

Beginning October 1st, The Income Tax School reports CE credits to the IRS every 10 days through the end of the calendar year.

For California residents seeking Qualifying Education (QE) and CE credits for CTEC, The Income Tax School reports to CTEC every 10 days throughout the calendar year. Beginning October 1st, The Income Tax School reports CE credits to CTEC daily.

CTEC students are responsible for verifying their own CE credits through their CTEC account before the 10/31 CTEC renewal deadline.

The ITS School Admin Team works diligently to report the influx of CE completions we receive near the deadline, as well as responding to students that reach out via email. While the School Admin Team may not be available to respond to inquiries right away during peak times, please know our students are always our top priority.

Should you need assistance from the ITS School Admin Team regarding CE credits, please first verify your CE credits by logging into your CTEC account. All reported CE credits will be listed in your CTEC account within the 4 main required categories and will include the name of the course and the number of CE hours earned. Any missing CE credits will also show up on this screen. Please take a screenshot of this information and include it in your email when you contact ITS School Admin Team for assistance with your ITS course information. Email ITS School Admin

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I’m buying a course on behalf of someone else, what should I do?

For business owners operating their own tax school who wish to license our courses for their students: email customercare@theincometaxschool.com or call 1-800-984-1040.

Many customers come to us and are buying a course or seminar for someone else. They could be buying the course for their spouse, or a business owner purchasing for an employee(s), or an employee signing up for a course that their employer is paying for. In those cases, use the following steps:

  1. Select your course(s)
  2. Proceed to checkout
  3. Fill the billing address and payment fields with the information of the person paying for the course.
  4. In the Additional Comments section: enter the names and emails of the person(s) taking the course(s)

Example: Jane is a business owner who wants to purchase the Comprehensive Tax Course for Megan and the CTP Program for Jeff. Jane puts both the Comprehensive course and the CTP Program in her cart and proceeds to checkout. Jane enters her information for the Name, Email, Billing Address, and credit card info, then specifies “Megan Smith – Comprehensive course. Email: megan@example.com, Jeff Jones – CTP Program. Email: jeff@example.com” in the Additional Comments section.

Jane will receive a receipt of purchase by email and will be given login credentials of her own by default. Our school administrators will then manually create student accounts for Megan and Jeff and add their respective courses to their accounts. Please allow up to 2 business days for this to take place.

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Refund Policy

The Refund Policy below is applicable only for courses students purchase directly from Surgent Income Tax School. Students who purchase any courses through third-party schools or other organizations must address all refund issues with the entity through which they made that purchase.

Please note: Operator’s Starter Kit, License Renewal, Tax Practice Management Manuals (Marketing, Operations), Print/Hard Copy Books for Individual Course Purchase, the Guide to Start and Grow Your Successful Tax Business, and the two Business Start-up Guides are non-refundable.

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