Enrolled Agent Exam [Part 2] 74, Form 1120 — Corporate Tax Return Components

Enrolled Agent Exam [Part 2] 74, Form 1120 — Corporate Tax Return Components

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - The distinct purpose of Form 1120 Schedules L, M-1, and M-2. - How to perform a book-to-tax reconciliation on Schedule M-1 with common exam-style adjustments. - The key differences and filing thresholds for using Schedule M-1 versus the more detailed Schedule M-3. - The standard due date for the corporate tax return and the process for filing an extension. - The schedule and requirements for a C corporation to make quarterly estimated tax payments. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 2] 73, General Business Credit Limitation — §38

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - The General Business Credit (GBC) is an aggregation of over 30 individual business credits, with one overall limitation. - The GBC limitation is calculated as net income tax minus the greater of the Tentative Minimum Tax (TMT) or 25% of regular tax liability over $25,000. - A common exam trap is forgetting to compare the 25% calculation with the TMT; you must use the larger of the two amounts to reduce the credit. - Unused General Business Credits are generally carried back one year and then carried forward for up to twenty years. - If regular tax liability is below $25,000, the 25% portion of the limitation calculation is treated as zero. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 2] 72, Employer Health Insurance Premium Credit

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - The Small Business Health Care Tax Credit requires fewer than 25 Full-Time Equivalent (FTE) employees, which is based on total hours worked, not a simple headcount. - Eligibility requires average annual wages below an inflation-adjusted threshold and that the health insurance be purchased through a SHOP Marketplace. - The maximum credit is 50% of premiums paid (35% for non-profits), but this amount phases out as employee count and average wages increase. - A critical exam trap is the two-consecutive-year limit for claiming the credit, which begins the first year it is taken. - The employer's deduction for health insurance premiums must be reduced by the dollar amount of the credit claimed. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 2] 71, Employer-Provided Childcare Credit

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - How to calculate the Employer-Provided Childcare Credit using the 25% and 10% rates. - The maximum annual credit limit of $150,000 and how it functions as a common exam trap. - The key requirements for a 'qualified childcare facility', including non-discrimination rules. - The critical 10-year recapture rule that applies if a facility ceases operations. - The specific IRS form, Form 8882, used to claim this general business credit. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep

Enrolled Agent Exam [Part 2] 70, Disabled Access Credit and FICA Tip Credit

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - The Disabled Access Credit is for small businesses with under $1 million in prior-year receipts OR 30 or fewer full-time employees. - How to calculate the Disabled Access Credit as 50% of eligible expenditures between $250 and $10,250, for a maximum credit of $5,000. - The FICA Tip Credit is for food and beverage employers for their share of FICA taxes paid on certain employee tips. - An exam trap for the FICA Tip Credit is to use the statutory $5.15 per hour rate in calculations, not the current federal minimum wage. - Employers claiming the FICA Tip Credit cannot also deduct the portion of FICA taxes that generated the credit. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep