Read the chapter once on your own.

Then watch the Becker lecture or whatever you are using (if you are using one). If not then just move on to the next step. Next, do MCQ. Mark the ones you get wrong and the ones you just guessed and got correct. Re-read notes, but this time only the important stuff. During this read, you will notice the stuff that is important because you will see it from the MCQ questions. Then make flash cards (although this step may be more useful in some parts morse so then others, for an example reg. and aud. flash cards are VERY useful, as apposed to fare and bec which they are not as helpful, or so i find). Now do simulations. MPORTANT: after 1 or 2 chapters go back to the MCQ and do the ones you got wrong, or take a "becker progress test on those chapters" to refresh your memory. Remember reptition is key. Finally when all is said and done. Redo all the MCQ questions again, and mark down the ones you get wrong AGAIN, and write an explanation as to why. Re-do sims if you have time. And re-read only important parts of chpts if you have time. Yes, I know this sounds like a lot, but IF you do this... YOU WILL PASS the CPA!
The AICPA recommends 2 - 3 hours of self study (M/C + Sims) for each hour of lecture that you watch. Just going by our course lecture times, this works out as follows: FAR - 96 hours REG - 72 hours AUD - 60 hours BEC - 48 hours

WHO MUST FILE? Income is = > sum of: a. personal exemption plus b. regular standard deduction (except for married filing separately) plus c. additional std deduction amt for taxpayers age 65 or over or blind (except for married persons filing separately). 2. Exceptions a. entrepreneurs with net earnings of $400 or more must file. b. Individuals who can be claimed as dependents on another taxpayer's return, have unearned income, and gross income of $900 (2008) or more must file. c. Individuals who receive advance payments of EIC must file. 2. Extension a. Automatic Six-Month Extension (until October 15) is available for those unable to file on the April 15. six-month extension must be requested by filing Form 4868 by April 15th. b. Payment of Tax is always April 15. 3. Taxpayers Who are Out of the Country need not file for the extension,must include documentation if the extension is taken.

SINGLE/END OF YEAR TEST 1. Single at year end 2. Legally separated B. JOINT RETURNS/END-OF-YEAR TEST -be married at yearend - living together recognized common law, or married and living apart 3. If one spouse dies during the year, a joint return may be filed. C. MARRIED FILING SEPARATELY -report their own income, -exemptions, credits, -and deductions on their individual tax returns. In a community property state, most of the income, deductions, credits, etc., are split 50/50. D. QUALIFYING WIDOW(ER) (SURVIVING SPOUSE) 1. For Two Years After Spouse's Death file joint tax return std deduction and rates (not the exemption for the deceased spouse) for two years after the year of death, unless he remarries. 2 Principal Residence for Dependent Child The surviving spouse must maintain a household that, for the whole entire taxable year, was the principal place of abode of a son, stepson, daughter, or stepdaughter. The surviving spouse must also be entitled to a dependency exemption for such individual. E. HEAD OF HOUSEHOLD pay lower taxes cuz larger std deduction and "wider" tax brackets. To qualify: 1. The individual is single or legally separated, or is married and has lived apart from his/her spouse for the last six months of the year at the close of the taxable year. 2. The individual is not a "qualifying widow(er)." 3. The individual is not a nonresident alien. 4. The individual maintains as his or her home a household that, for more than half the taxable year, is the principal residence of: a. A Son or Daughter (1) Legally adopted children, stepchildren, and grandchildren qualify as sons and daughters. (2) Working Families Act: The definition of head-of-household conforms with the uniform definition of a child. To qualify for head-of-household status, the child must either be a qualifying child or qualify as the taxpayer's dependent (qualifying relative). b. Father or Mother (Not Required to Live With) provided the taxpayer maintains a home that was the principal residence of the parent for the entire year. c. Dependent Relatives (Must Live With) Parents, grandparents, brothers, sisters, aunts, uncles, nephews, and nieces (as well as stepparents, parents-in-law, etc.) I. PERSONAL EXEMPTIONS Generally, an individual is entitled to a personal exemption that is indexed annually for inflation.

A. PERSONS CLAIMED AS DEPENDENTS will not be allowed a personal exemption on their own returns. B. MARRIED TAXPAYERS 1. Each Spouse Receives Personal Exemption personal exemption (not a dependency exemption) even if the spouse does not work. 2. Spouse as Personal Exemption on a Separate Return However, a married taxpayer, who files separately, may claim his or her spouse's personal exemption if both of the following tests are met: a. spouse has no gross income; and b. spouse was not claimed as a dependent of another taxpayer. C. BIRTH OR DEATH DURING YEAR Exemptions are not prorated. A. QUALIFYING CHILD satisfies the following: 1. Close Relative Must be the taxpayer's son, daughter, stepson, stepdaughter, brother, sister, stepbrother, stepsister, or a descendant of any of these. A foster child who is placed with the taxpayer by an authorized placement agency or by judgment 2. Age Limit In general, a child must be under age 19 (or age 24 in the case of a full-time student) to be a qualifying child (although no age limit applies with respect to individuals who are totally and permanently disabled at any time during the tax year). A "full time" student is a student who attends an educational institution for at least part of each of five months during the taxable year. An "educational institution" is one that maintains full-time faculty and a daytime program. School attendance only at night does not qualify. CARES 3. Residency Requirement Under the residency requirement test, a child must have the same principal place of abode as the taxpayer for more than one half of the tax year. 4. Eliminate Gross Income Test The gross income test does not apply to a qualifying child. 5. Support Test Changes If the child did not contribute more than one-half of his own support the requirement that the taxpayer (parent) provides over one-half of the child's support is eliminated. B. QUALIFYING RELATIVE Taxpayers can apply the "SUPORT" dependency exemption rules to claim a dependency exemption for a qualifying relative who does not satisfy the qualifying child requirements. 1. Support Test The taxpayer must have supplied more than one-half (greater than 50%) of the support of a person in order to claim him or her as a dependent. Support means the actual expenses incurred by or on behalf of the dependent. Scholarships received not included in determining support. However, Social Security and state welfare payments are included in the dependent's total support, but only such amounts expended for support purposes. a. Multiple Support Agreements Where two or more taxpayers together contribute more than 50% to the support of a person but none of them individually contributes more than 50%, the contributing taxpayers, all of whom must be qualifying relatives of (or lived the entire year with) the individual, may agree among themselves which contributor may claim the dependency exemption. (1) A contributor must have contributed more than 10% of the person's support in addition to meeting the other dependency tests in order to be able to claim him or her as a dependent. (2) The joint contributors are required to file a multiple support declaration,

Form 2120. b. Child of Divorced Parent (1) General Rule: Custodial Parents Generally, the parent who has custody of the child for the greater part of the year takes the exemption (determined by a "time" test, not the divorce decree). It does not matter whether that parent actually provided more than one-half of the child's support. If the parents have equal custody during the year, the parent with the higher adjusted gross income will claim the exemption. (2) Exception: Custodial Parent Waives Right A noncustodial divorced or separated parent may claim the exemption for his or her child if the custodial parent waives the right to the exemption. the custodial parent's signing of a written declaration that is attached to the noncustodial parent's return. Form 8332 is used as the required written declaration. 2. Under Exemption Amount of (Taxable) Gross Income A person may not be claimed as a dependent unless the dependent's gross income is less than the exemption amount ($3,500 during the taxable year 2008). a. Definition of Taxable Income income included for the purpose of determining whether the dependent has earned less than the exemption amount. b. Non-Taxable Income (1) Social Security (at low income levels) (2) Tax exempt interest income (state and muni interest income) (3) Tax exempt scholarships 3. Precludes Dependent Filing a Joint Return A taxpayer will lose the exemption for a married dependent who files a joint return, unless the joint return is filed solely for a refund of all taxes paid or withheld for the taxable year (i.e., the tax is zero). Married children may be claimed as dependents provided they do not file joint returns with their spouses (except to claim a refund of all taxes paid) and provided they satisfy all other requirements for dependency. 4. Only U.S. Citizens or Residents of U.S., Mexico, or Canada can be a dependent 5. Relative Children, grandchildren, parents, grandparents, brothers, sisters, aunts and uncles, nieces and nephews (as well as stepchildren, in-laws, etc.) can be claimed as dependents. Foster parents and cousins must live with the taxpayer the entire year.
OR

6. Taxpayer Lives with Individual (if Non-relative) for Whole Year may be claimed as a dependent.