About Course
JoseTaxes Academy
Annual Federal Tax Refresher (AFTR)
General Information
Course
Annual Federal Tax Refresher (AFTR)
Instructor
Jose Barrientos
CE Hours
6 Hours (IRS Annual Federal Tax Refresher)
Format
Independent (Self-Study)
Language
English
Certification
IRS-Approved CE Course — AFSP Record of Completion
Course Description
The Annual Federal Tax Refresher (AFTR) is the mandatory 6-hour continuing education course required by the IRS for non-credentialed tax return preparers who wish to participate in the Annual Filing Season Program (AFSP). Upon completion alongside the other required CE hours and passing the comprehension exam, the preparer earns the AFSP Record of Completion, is included in the IRS public directory, and gains limited representation rights before the agency.
This course strictly follows the three-domain structure of the IRS AFTR outline (Publication 6079): 2026 tax law changes, general Form 1040 review, and professional responsibilities under Circular 230. It is designed for preparers who actively work with real tax returns and want to stay updated, avoid costly errors, and demonstrate a serious commitment to continuing education to their clients.
Course Objective
Prepare participants to accurately complete 2026 individual tax returns (Form 1040) by reviewing the most recent changes in tax law, core elements of return preparation, and professional responsibilities governing Annual Filing Season Program participants under Circular 230.
Learning Objectives
- Identify major 2026 tax law changes affecting Form 1040 and Schedules 1–3, including inflation adjustments, new deductions, and revised credits.
- Apply current rules to income, deductions, and credits in common individual filing scenarios.
- Determine correct filing status, dependency eligibility, and proper treatment of wages, investment income, retirement, and business income.
- Calculate standard deduction vs. Schedule A itemized deductions, accounting for 2026 limits and phaseouts.
- Recognize professional responsibilities regarding data security, ITINs, e-file rules, and the AFSP under Circular 230.
Who Should Take This Course
- Non-credentialed tax return preparers seeking the 2026 AFSP Record of Completion.
- Preparers who work with Form 1040 returns and need an update for the 2026 filing season.
- Professionals who want to be listed in the IRS public Directory of Federal Tax Return Preparers.
- Preparers seeking limited representation rights before the IRS for returns they prepare and sign.
- Any tax professional aiming to improve return quality and minimize the risk of errors.
Course Content — 20 Chapters / 3 Domains
| # | Title | Description |
|---|---|---|
| Domain 1 — New Tax Laws and Recent Updates (Chapters 1–7) | ||
| 01 | 2026 Inflation and Cost-of-Living Adjustments | Key inflation-adjusted amounts per Rev. Proc. 2025-32: educator expense deduction ($350), foreign earned income exclusion ($130,700), annual gift exclusion ($19,000). Student loan interest phaseout ranges: $85,000–$100,000 (single), $175,000–$205,000 (married filing jointly). |
| 02 | New Standard Mileage Rates | IRS mileage rates for 2026 (Notice 2026-10): business, medical, and charitable mileage. Applying the correct rate based on travel purpose. Standard mileage rate vs. actual expense method. |
| 03 | Income Reporting Requirement Changes | New reporting thresholds for Form 1099-K, 1099-NEC, and 1099-MISC in 2026. Updating client interviews to capture digital platform income. Handling income received without an information return. |
| 04 | Updated Tax Credits | Updates to key credits: Child and Dependent Care Credit, Adoption Credit, AOTC, Lifetime Learning Credit, and Alternative Fuel Vehicle Refueling Property Credit. New phaseout rules and credit limits. |
| 05 | Itemized Deduction Updates | Changes to Schedule A deduction limits: mortgage interest, casualty losses, gambling losses, and the SALT deduction limit. Impact of the One Big Beautiful Bill Act (OBBBA) on these deductions. |
| 06 | Schedule 1-A: Additional Deductions | New above-the-line deductions introduced or modified by the OBBBA: tips, overtime pay, auto loan interest, and senior taxpayer deduction. Proper reporting on Schedule 1. |
| 07 | Other Important 2026 Updates | Changes to charitable deductions, 529 plans, Trump Accounts, and HSA accounts. OBBBA provisions affecting individual returns. Updating client organizers to reflect new thresholds. |
| Domain 2 — General Form 1040 Review (Chapters 8–15) | ||
| 08 | Filing Status and Dependents | Determining correct filing status with 2026 thresholds. Qualifying child vs. qualifying relative rules. Special scenarios: non-standard married taxpayer situations, divorced parents’ children. |
| 09 | Types of Income | Classification and reporting of wages (W-2), interest, dividends, retirement income, IRA distributions, unemployment, and alimony. Key forms: 1099-INT, 1099-DIV, 1099-R, SSA-1099. |
| 10 | Schedule C: Sole Proprietorship Business | Sole proprietorship income and expenses. Home office deduction. Section 179 and depreciation rules. Applying Schedule C to Form 1040 and calculating self-employment tax. |
| 11 | Capital Gains and Losses | Classifying short-term vs. long-term gains and losses. 2026 maximum capital gains tax rate brackets. Form 8949 and Schedule D. Tax treatment of digital assets (cryptocurrency). |
| 12 | Standard Deduction and Schedule A Itemized Deductions | 2026 standard deduction amounts by filing status. Comparison: standard deduction vs. Schedule A. Schedule A categories: mortgage interest, state taxes (SALT), medical expenses, charitable contributions. |
| 13 | Tax Credits: CTC, Dependent Care, Education, and EITC | Child Tax Credit (CTC) and Additional CTC under 2026 rules. Child and Dependent Care Credit (Form 2441). Education credits: AOTC and Lifetime Learning Credit (Form 8863). Earned Income Tax Credit (EITC): eligibility and 2026 tables. |
| 14 | General Topics | Digital assets: reporting crypto and NFTs. Alternative Minimum Tax (AMT). Qualified Business Income (QBI) deduction. Kiddie Tax. 529 plans and ABLE accounts. Cancellation of debt (COD). Net Operating Losses (NOL). Premium Tax Credit (PTC, Form 8962). Fringe benefits. |
| 15 | Withholding, Estimated Payments, and Deadlines | Verifying client withholding sufficiency. Quarterly estimated tax payments: mandatory conditions and calculation methods. Refund options vs. balance due. 2026 filing deadlines and extensions. |
| Domain 3 — Practices, Procedures, and Professional Responsibility (Chapters 16–20) | ||
| 16 | Data Protection and Security | Tax-related identity theft: recognition and prevention. Written Information Security Plan (WISP). Safeguarding taxpayer data per IRS Publications 4557 and 5199. Phishing red flags and data breach response. |
| 17 | ITINs and Preparer Requirements | Individual Taxpayer Identification Number (ITIN): eligibility and application rules. PTIN requirements for preparers: registration, renewal, and obligations. Consequences of preparing returns without a valid PTIN. |
| 18 | E-file Requirements | IRS rules for Authorized e-file Providers. Mandatory e-file thresholds for preparers. Electronic signature forms: Form 8879. IRS Publication 1345 rules and compliance. |
| 19 | Annual Filing Season Program (AFSP) | How the AFSP works: CE requirements, Record of Completion, and limited representation rights. Obtaining the AFSP Record of Completion via PTIN account. Circular 230 consent. IRS Public Directory listing. |
| 20 | IRS Online Accounts | Tax Pro Account: features for credentialed and registered preparers. Individual Online Account: navigating and guiding clients. Digital IRS tools for verifying payments, transcripts, and payment agreements. |
What You Will Achieve
- Apply 2026 tax law changes to real Form 1040 tax returns, including new deductions and credits under the One Big Beautiful Bill Act.
- Determine correct filing status, dependent eligibility, and treatment for common income streams.
- Calculate and compare the standard deduction against Schedule A itemized deductions using 2026 limits.
- Complete Schedule C, calculate capital gains, and apply key tax credits (CTC, EITC, AOTC, and Dependent Care).
- Safeguard client data using a Written Information Security Plan (WISP) and identify identity theft red flags.
- Comply with PTIN, e-file, and Circular 230 requirements as an AFSP participant.
- Pass the 100-question AFTR comprehension exam and earn the 2026 AFSP Record of Completion.
Course Materials
- Course Book: Annual Federal Tax Refresher (AFTR) — 2026 Filing Season
- IRS Publication 6079 — AFTR Course Outline
- Revenue Procedure 2025-32 — 2026 Inflation-Adjusted Amounts
- One Big Beautiful Bill Act (OBBBA) Provisions and Related IRS Notices
- Official IRS Forms: 1040, Schedules 1–3, 8812, 2441, 8863, 8949, 8962
- Treasury Department Circular No. 230 (31 CFR Part 10)
- IRS Publication 1345 — Handbook for Authorized IRS e-file Providers
- IRS Publications 4557 and 5199 — Data Security and Identity Protection
- Review questions, worked examples, and practical case studies
Assessment
| Score / Type | Component | Requirement / Description |
|---|---|---|
| — | Review Questions | Up to 18 multiple-choice questions distributed throughout the course to reinforce comprehension. Ungraded practice for the final exam. |
| — | Case Study Analysis | Form 1040 scenario-based exercises covering all three AFTR domains to test real-world application of 2026 rules. |
| 70% | AFTR Final Exam | 100 multiple-choice questions. Time limit: 3 continuous hours without pausing. Requires a minimum score of 70% to pass. Covers all three domains with at least one question per required topic in IRS Pub 6079. |
Frequently Asked Questions
What is the AFSP Record of Completion?
It is the certificate issued by the IRS to non-credentialed preparers who complete the required AFSP CE hours, pass the AFTR exam, and consent to Circular 230. It includes you in the official IRS public directory and grants limited representation rights for returns you prepare and sign.
How many CE hours do I need in addition to the AFTR for the AFSP?
The AFTR fulfills 6 of the required CE hours. The AFSP also requires 2 hours of ethics and may require additional CE hours depending on your preparer status. Check your requirements on irs.gov/afsp.
What happens if I do not pass the AFTR exam?
You may retake the exam. The IRS requires that every third attempt be a different version of the exam containing a significant number of new questions. Your CE provider will inform you of specific retake policies.
Is the course offered in English or Spanish?
The primary course material and textbook are in English. Supplemental resources in Spanish are available on JoseTaxes.com.
How long do I have to complete the course?
It is a self-study course, so you can learn at your own pace. However, keep in mind that the final 100-question exam must be completed in a single continuous session of up to 3 hours.
I already hold a credential (CPA, EA, Attorney). Do I need the AFTR?
No. The AFTR is only mandatory for non-credentialed preparers seeking the AFSP Record of Completion. CPAs, Enrolled Agents, and Attorneys have their own CE requirements and full representation rights before the IRS.
Student Ratings & Reviews
No Review Yet