US Tax — Level 1

How Level 1 is organized, how each lesson works, and what it does and doesn't cover U.S. federal · Course version 2026.1 Level: Foundation By the end of this lesson you will be able to: • Describe the Level 1 lesson map and what each lesson adds to the Rivera return • Explain the teaching cycle each lesson follows • Describe awareness, guided application and independent performance • State the prerequisite for Level 1 and what completing it does and doesn't show • Identify the topics left to US Tax Level 2 and when to escalate them • Use Form 1040 and the IRS instructions and publications as study tools Before this lesson you should know: • None in U.S. tax • Basic bookkeeping concepts (income, expenses, records) and everyday arithmetic including percentages Outside this lesson's scope (refer or escalate): • A client's facts include investment sales, Schedule C, Schedule E or foreign accounts (US Tax Level 2) • A client has Canadian or other cross-border ties (Cross-Border Tax course) • A state or local return is needed (outside this course)

What Level 1 covers, how it handles tax year 2025, and the credentials and numbers a U.S. preparer needs Tax year 2025 (returns filed in 2026) · U.S. federal · Course version 2026.1 Level: Foundation By the end of this lesson you will be able to: • Describe the scope of Level 1 and the topics it only recognizes and escalates • Explain why state and local taxes matter even when you prepare only the federal return • Use software as a tool and work from official 2025 forms and instructions • Compare CPA, EA, attorney, AFSP and PTIN-only preparers using IRS sources • Explain when a PTIN, an EIN or a certifying acceptance agent is needed • Gather the starting facts for the Rivera household's 2025 return Before this lesson you should know: • Course Orientation (US Tax Level 1) • No prior U.S. tax knowledge; basic bookkeeping and arithmetic Outside this lesson's scope (refer or escalate): • Investment sales, Schedule C, Schedule E or foreign accounts appear (US Tax Level 2) • Nonresident, dual-status or treaty questions arise (Cross-Border Tax) • A state or local return is needed (outside this course; flag to the client) • A client needs representation in appeals or collection and you are not a CPA, EA or attorney

Law and guidance, who files, status and brackets, what late filing costs, and a full return start to finish Tax year 2025 (returns filed in 2026) · U.S. federal · Course version 2026.1 Level: Foundation By the end of this lesson you will be able to: • Explain how the U.S. tax system developed and define AGI, MAGI and other core terms • Rank the Code, regulations, court cases, IRS guidance and publications by authority • Decide who must, or should, file and apply the substantial presence test • Choose the filing status and test children against the qualifying-child rules • Calculate 2025 tax with the brackets; apply deadlines, penalties and estimated tax • Trace a Form 1040 from source documents to refund using 2025 line numbers Before this lesson you should know: • US Tax Level 1 Course Orientation and Course Introduction • No prior U.S. tax knowledge; basic bookkeeping and arithmetic including percentages Outside this lesson's scope (refer or escalate): • Residency is unclear: substantial presence, closer connection or treaty tie-breaker (Cross-Border Tax) • A spouse is a nonresident alien or the couple wants to elect joint resident treatment (Cross-Border Tax) • The return includes Schedule C, Schedule E, investment sales or foreign accounts (US Tax Level 2) • Penalty abatement beyond a routine first-time abatement request • A client changes from joint to separate returns after the due date, or another amended-status question