Video: Gross Income Overview

In this lesson, Nick Palazzolo, CPA, takes a deep dive into the intricacies of gross income for tax purposes. Starting off by identifying what constitutes gross income, he explains how to differentiate between taxable and nontaxable items and where to locate these on the tax form 1040. He stresses the importance of hands-on familiarization with the forms, schedules, and the overall structure of a tax return. This exercise is designed to help make connections between the theory and its practical application, particularly for those who are visual learners. Furthermore, Nick guides through the process of tax planning and projecting future income, as well as evaluating client documentation to accurately determine and report an individual’s or entity’s gross income. This approach not only prepares for the exam but also equips with skills applicable in real-world tax preparation scenarios.