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There are 8 modules in this course
This course provides a comprehensive overview of United States (US) individual taxation and policies, tailored for beginner learners and career reskillers in finance. Participants will explore key historical events that have shaped US tax policy, including the significance of the 16th Amendment and the evolution of federal income tax rates. The course will also cover the impact of major tax reforms on individual taxpayers, the classification of taxable income, and the calculation of tax liability.
Learners will gain insights into deductions, including above-the-line and below-the-line deductions, as well as the role of the IRS in tax administration. The course will address common tax credits, the implications of different business entities, and the process for amending a federal income tax return. By the end of the course, participants will be equipped to prepare and complete a comprehensive individual federal income tax return.
Start here to understand how United States (US) individual taxation developed and why it looks the way it does today. This module connects landmark moments, constitutional changes, and major reforms to the numbers and rules that affect taxpayers and finance professionals. You’ll see how historical shifts shaped revenue sources and the policy tradeoffs behind them.
Welcome to US Individual Taxation and Policies•1 minute
The Big Picture: Why US Tax History Matters Today•3 minutes
Why the 16th Amendment Changed Tax Policy•2 minutes
How Federal Income Tax Rates Have Evolved•4 minutes
Landmark Reforms: 1913–1986 and Beyond•3 minutes
4 readings•Total 35 minutes
Resource: Annual Limits Guide•5 minutes
The History of the 16th Amendment•10 minutes
Progressivity and Revenue•10 minutes
Reading Tax Law: Sources, Citations, and How to Interpret Rules•10 minutes
2 assignments•Total 60 minutes
Graded Assessment: Historical Events, 16th Amendment, and Reform Impacts•30 minutes
Knowledge Check: Key Events, the 16th Amendment, and Rate Changes•30 minutes
1 discussion prompt•Total 10 minutes
Reflective Discussion: How Would a Reform Change Your Tax Picture?•10 minutes
The Role of the IRS
Module 2•2 hours to complete
Module details
This module explains who runs the tax system and how compliance is enforced. You’ll learn what the IRS does day-to-day, what triggers audits, the rights taxpayers have, and how common penalties and amendment processes work in practice.
Why the IRS Matters: Who Enforces the Tax System and Why It Affects You•7 minutes
How Audits Work: Triggers, Scope, and the Examination Process•4 minutes
Enforcement: Interest and Penalties •2 minutes
2 readings•Total 20 minutes
What the IRS Does: Structure, Authorities, and Enforcement Tools•10 minutes
Applying Audit Concepts: Scenario-Based Practice With an Individual Taxpayer•10 minutes
2 assignments•Total 60 minutes
Graded Assessment: Audits, Penalties, Rights, and Amendment Procedures•30 minutes
Knowledge Check: Audits, the IRS, and Interest and Penalties•30 minutes
2 discussion prompts•Total 20 minutes
Discussion: Exploring Taxpayer Rights and Interactions With the IRS•10 minutes
Discussion: Deciding When and How to Amend a Federal Income Tax Return•10 minutes
Gross Income
Module 3•2 hours to complete
Module details
This module clarifies what counts as taxable income and how the tax base is constructed. You’ll define gross income, recognize common income types, compute adjusted gross income (AGI), and understand how AGI and other items feed into a taxpayer’s overall tax liability.
From Gross Income to AGI: Worked Examples•4 minutes
2 readings•Total 20 minutes
Core Definitions: Filing Status, Exemptions, and Tax Rates•10 minutes
Scenario Practice: Arriving at AGI•10 minutes
2 assignments•Total 60 minutes
Graded Assessment: Gross Income, AGI, and Tax Liability•30 minutes
Knowledge Check: Compute AGI and Identify Taxable Items•30 minutes
1 discussion prompt•Total 10 minutes
Reflective Discussion: How AGI Affects Tax Outcomes and Planning•10 minutes
Deductions
Module 4•2 hours to complete
Module details
Learn the basics of deductions, including above-the-line deductions and below-the-line deductions. Dive into the classifications of each and which type of deduction may present the better taxpayer benefit. Explore the most-used deductions and credits that reduce taxable income and tax owed. You’ll learn when to take the standard deduction versus itemizing, common credits, and special treatments for charitable giving, education expenses, and health savings accounts.
Reflective Discussion: Itemized versus the Standard Deduction•10 minutes
Capital Assets, Tax Credits, and Nontaxable Exchanges
Module 5•2 hours to complete
Module details
Explore the most-used tax credits that reduce taxable income and tax owed. You’ll learn how capital assets work, including basis recovery, calculating gain or loss, and unique exceptions that create nontaxable events.
What's included
3 videos3 readings2 assignments
Show info about module content
3 videos•Total 11 minutes
Tax Credits and the Tax Policy Behind Them•2 minutes
Asset Depreciation: The Why and the How•5 minutes
Nontaxable Exchanges•4 minutes
3 readings•Total 30 minutes
Common Tax Credits: Refundable vs. Nonrefundable and Examples•10 minutes
Depreciation and Asset Categorization•10 minutes
Applying the Most Common Nontaxable Exchanges•10 minutes
2 assignments•Total 60 minutes
Graded Assessment: Tax Credits, Depreciation, and Nontaxable Exchanges•30 minutes
Knowledge Check: Deductions, Credits, and Special Cases•30 minutes
Passive Activity Rules and the Alternative Minimum Tax
Module 6•2 hours to complete
Module details
Delve into the creation and application of the passive activity rules and alternative minimum tax. Understand the historical context for the creation of these rules and their practical application today.
Passive Activity Rules and the Historical Context•5 minutes
The AMT and the Historical Context •2 minutes
2 readings•Total 20 minutes
Applications and Limitations to Passive Activity Rules •10 minutes
Applications and Limitations to the AMT•10 minutes
2 assignments•Total 60 minutes
Graded Assessment: Passive Activity Rules and AMT•30 minutes
Knowledge Passive Activity Rules and AMT•30 minutes
2 discussion prompts•Total 20 minutes
Discussion: Tax Deferral Strategies, Planning Tradeoffs, and AMT Reflection•10 minutes
Reflective Discussion: Thoughts on PALs and AMT•10 minutes
Business Entities and Passthroughs
Module 7•2 hours to complete
Module details
Many individual taxpayers also run businesses. This module introduces the IRS-recognized business structures and the tax consequences individuals face when operating as sole proprietors, partners, or LLC owners. The focus is on how income flows and is reported for personal tax returns.
Why Business Entity Choice Matters for Individual Taxpayers•6 minutes
How to Report Business Income: Schedule C and Passthroughs•4 minutes
2 readings•Total 20 minutes
Core Concepts: IRS-Recognized Business Entity Types and Reporting Basics•10 minutes
What Constitutes a Reasonable and Necessary Business Expense?•10 minutes
2 assignments•Total 60 minutes
Graded Assessment: Business Entities and Passthrough Reporting•30 minutes
Knowledge Check: Business Income Reporting and Passthrough Concepts•30 minutes
1 discussion prompt•Total 10 minutes
Reflection: Considerations When Forming an LLC or Entering a Partnership•10 minutes
Complete an Individual Tax Return
Module 8•2 hours to complete
Module details
Demonstrate mastery by preparing a complete, authentic federal individual tax return for a realistic taxpayer scenario. This capstone integrates income recognition, AGI adjustments, deductions and credits, business income considerations, and tax calculations to produce a finished Form 1040 and supporting schedules.
What's included
2 videos1 assignment
Show info about module content
2 videos•Total 2 minutes
Why Preparing an Entire Form 1040 Matters•1 minute
Congratulations!•0 minutes
1 assignment•Total 90 minutes
Comprehensive Assessment•90 minutes
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