EVENT DESCRIPTION
This course is a high-level, basic Form 1040 refresher covering current federal tax law and the preparation of 2026 individual income tax returns. Participants will review the 2026 inflation adjustments and key One, Big, Beautiful Bill Act (OBBBA) provisions affecting individual returns, work through a general review of filing status, dependents, income, deductions, and credits under the flow of the Form 1040 and Schedules 1–3, and examine tax practice, procedure, and professional responsibility topics including data security, preparer penalties, due diligence, e-file requirements, and Annual Filing Season Program (AFSP) participation. Where a figure changed mid-year after the AFTR Course Outline was published (such as the standard mileage rate), the course and test reflect the amount in effect at the time the outline was issued. This course satisfies the IRS Annual Federal Tax Refresher (AFTR) requirement for non-exempt 2027 AFSP participants.
Level: Basic | Prerequisites: None | Advance Preparation: None | Delivery Method: Self-Study | CE Hours: 6 | IRS Program Number: MFA75-A-00547-26-S
Note for Maryland-registered tax preparers: Maryland Board of Individual Tax Preparers registrants are exempt from the AFTR requirement under the IRS's recognition of Maryland's state-based testing program. See [Publication 5646] for the full AFSP CE requirements breakdown.
EVENT OBJECTIVE
Upon completion of this course, participants will be able to:
Domain 1 — New Tax Law / Recent Updates
- Identify 2026 inflation-adjusted amounts for educator expenses, student loan interest, the foreign earned income exclusion, and the annual gift tax exclusion
- Describe OBBBA provisions affecting 2026 returns, including changes to Form 1099-K/1099-NEC/1099-MISC reporting thresholds, the Child and Dependent Care Credit, and itemized deduction limitations
- Explain the new Schedule 1-A above-the-line deductions for tips, overtime pay, auto loan interest, and the senior deduction, including their reporting requirements
- Recognize new and expanded tax-advantaged accounts for 2026, including Trump Accounts and HSA eligibility changes
Domain 2 — General Review - Determine a taxpayer's correct filing status based on marital status, dependency rules, and the household-maintenance test
- Apply the qualifying child and qualifying relative tests, including rules for divorced or separated parents claiming a dependent
- Identify taxable and reportable income across common Form 1040 schedules, including wages, interest and dividends, retirement income, unemployment compensation, alimony, and Schedule C business income
- Calculate common individual credits and deductions, including the Child Tax Credit, Earned Income
- Credit, education credits, the QBI deduction, and Schedule A itemized deductions
- Recognize general-topic areas requiring a working understanding, including digital assets, AMT, the kiddie tax, 529 plans, and the Premium Tax Credit
Domain 3 — Practices, Procedures and Professional Responsibility - Identify warning signs of tax-related identity theft and describe steps for safeguarding taxpayer data
- Explain preparer penalty provisions and the due diligence requirements of Form 8867
- Describe e-file requirements and an Electronic Return Originator's (ERO) recordkeeping and correction responsibilities
- Summarize AFSP participation requirements, Circular 230 obligations, and the scope of limited representation rights
Comprehension Test
100 multiple-choice questions per attempt, drawn from a 156-question bank; 70% required to pass; 3-hour time limit; up to 4 attempts, with a substantially different question set (Version 2) provided beginning at the 3rd attempt. Course and test must be completed by December 31, 2026.
COURSE NAME
2026 Annual Federal Tax Refresher (AFTR) Course
