Lambo Tax Preparation AcademyLevel 2 · about 70 hours
Level 2 — Individual Taxation
Level 2 follows the Form 1040 from top to bottom, so each module adds lines to a return the learner already understands. It is built on the recurring client cast: each module adds one new fact to someone's life (a baby, a side gig, a home sale) and the learner amends their file.
Modules
11 modules · 70 module hours
Open the course| # | Module | Key content | Hours |
|---|---|---|---|
| 2.1 | Filing basics | Filing requirements, filing status (including head of household and qualifying surviving spouse), dependents and the qualifying child/relative tests, SSN/ITIN rules | 6 |
| 2.2 | Wage and investment income | W-2, interest and dividends (Schedule B), capital gains and losses (Form 8949, Schedule D), basis, wash sales, Form 1099 series | 8 |
| 2.3 | Retirement and Social Security | 1099-R codes, IRA/401(k) rollovers and early-withdrawal penalty, required minimum distributions, taxable Social Security, pensions | 6 |
| 2.4 | Self-employment and gig income | Schedule C basics, 1099-NEC/1099-K, ordinary and necessary expenses, home office, vehicle, self-employment tax (Schedule SE), estimated tax | 8 |
| 2.5 | Other income | Rental income (Schedule E), unemployment, gambling, alimony (pre- vs post-2019 divorce), cancellation of debt, K-1 income received | 6 |
| 2.6 | Adjustments to income | HSA, IRA deduction, student loan interest, self-employed health insurance and SEP, educator expenses | 4 |
| 2.7 | Deductions | Standard vs itemized (Schedule A): medical, SALT under the higher cap, mortgage interest, charitable gifts; the new Schedule 1-A deductions for tips, overtime, car loan interest and seniors | 8 |
| 2.8 | Credits | Child tax credit and credit for other dependents, EITC, child and dependent care, education credits (AOTC, LLC), saver's credit, premium tax credit (Form 8962) | 10 |
| 2.9 | Other taxes and payments | Additional Medicare tax, net investment income tax, household employment, underpayment penalty (Form 2210), withholding and estimated payments | 4 |
| 2.10 | Special situations | Sale of a home, foreign income basics (when to refer out), decedent returns, amended returns (1040-X), injured/innocent spouse | 5 |
| 2.11 | State returns | Residency, part-year and nonresident returns, common state add-backs; a module built for the academy's home state | 5 |
2.1
Module
Filing basics
Key content
Filing requirements, filing status (including head of household and qualifying surviving spouse), dependents and the qualifying child/relative tests, SSN/ITIN rules
Hours
6
2.2
Module
Wage and investment income
Key content
W-2, interest and dividends (Schedule B), capital gains and losses (Form 8949, Schedule D), basis, wash sales, Form 1099 series
Hours
8
2.3
Module
Retirement and Social Security
Key content
1099-R codes, IRA/401(k) rollovers and early-withdrawal penalty, required minimum distributions, taxable Social Security, pensions
Hours
6
2.4
Module
Self-employment and gig income
Key content
Schedule C basics, 1099-NEC/1099-K, ordinary and necessary expenses, home office, vehicle, self-employment tax (Schedule SE), estimated tax
Hours
8
2.5
Module
Other income
Key content
Rental income (Schedule E), unemployment, gambling, alimony (pre- vs post-2019 divorce), cancellation of debt, K-1 income received
Hours
6
2.6
Module
Adjustments to income
Key content
HSA, IRA deduction, student loan interest, self-employed health insurance and SEP, educator expenses
Hours
4
2.7
Module
Deductions
Key content
Standard vs itemized (Schedule A): medical, SALT under the higher cap, mortgage interest, charitable gifts; the new Schedule 1-A deductions for tips, overtime, car loan interest and seniors
Hours
8
2.8
Module
Credits
Key content
Child tax credit and credit for other dependents, EITC, child and dependent care, education credits (AOTC, LLC), saver's credit, premium tax credit (Form 8962)
Hours
10
2.9
Module
Other taxes and payments
Key content
Additional Medicare tax, net investment income tax, household employment, underpayment penalty (Form 2210), withholding and estimated payments
Hours
4
2.10
Module
Special situations
Key content
Sale of a home, foreign income basics (when to refer out), decedent returns, amended returns (1040-X), injured/innocent spouse
Hours
5
2.11
Module
State returns
Key content
Residency, part-year and nonresident returns, common state add-backs; a module built for the academy's home state
Hours
5
| Key content | Hours | |
|---|---|---|
| 2.1 Filing basics | Filing requirements, filing status (including head of household and qualifying surviving spouse), dependents and the qualifying child/relative tests, SSN/ITIN rules | 6 |
| 2.2 Wage and investment income | W-2, interest and dividends (Schedule B), capital gains and losses (Form 8949, Schedule D), basis, wash sales, Form 1099 series | 8 |
| 2.3 Retirement and Social Security | 1099-R codes, IRA/401(k) rollovers and early-withdrawal penalty, required minimum distributions, taxable Social Security, pensions | 6 |
| 2.4 Self-employment and gig income | Schedule C basics, 1099-NEC/1099-K, ordinary and necessary expenses, home office, vehicle, self-employment tax (Schedule SE), estimated tax | 8 |
| 2.5 Other income | Rental income (Schedule E), unemployment, gambling, alimony (pre- vs post-2019 divorce), cancellation of debt, K-1 income received | 6 |
| 2.6 Adjustments to income | HSA, IRA deduction, student loan interest, self-employed health insurance and SEP, educator expenses | 4 |
| 2.7 Deductions | Standard vs itemized (Schedule A): medical, SALT under the higher cap, mortgage interest, charitable gifts; the new Schedule 1-A deductions for tips, overtime, car loan interest and seniors | 8 |
| 2.8 Credits | Child tax credit and credit for other dependents, EITC, child and dependent care, education credits (AOTC, LLC), saver's credit, premium tax credit (Form 8962) | 10 |
| 2.9 Other taxes and payments | Additional Medicare tax, net investment income tax, household employment, underpayment penalty (Form 2210), withholding and estimated payments | 4 |
| 2.10 Special situations | Sale of a home, foreign income basics (when to refer out), decedent returns, amended returns (1040-X), injured/innocent spouse | 5 |
| 2.11 State returns | Residency, part-year and nonresident returns, common state add-backs; a module built for the academy's home state | 5 |
2.1 Filing basics
Key content
Filing requirements, filing status (including head of household and qualifying surviving spouse), dependents and the qualifying child/relative tests, SSN/ITIN rules
Hours
6
2.2 Wage and investment income
Key content
W-2, interest and dividends (Schedule B), capital gains and losses (Form 8949, Schedule D), basis, wash sales, Form 1099 series
Hours
8
2.3 Retirement and Social Security
Key content
1099-R codes, IRA/401(k) rollovers and early-withdrawal penalty, required minimum distributions, taxable Social Security, pensions
Hours
6
2.4 Self-employment and gig income
Key content
Schedule C basics, 1099-NEC/1099-K, ordinary and necessary expenses, home office, vehicle, self-employment tax (Schedule SE), estimated tax
Hours
8
2.5 Other income
Key content
Rental income (Schedule E), unemployment, gambling, alimony (pre- vs post-2019 divorce), cancellation of debt, K-1 income received
Hours
6
2.6 Adjustments to income
Key content
HSA, IRA deduction, student loan interest, self-employed health insurance and SEP, educator expenses
Hours
4
2.7 Deductions
Key content
Standard vs itemized (Schedule A): medical, SALT under the higher cap, mortgage interest, charitable gifts; the new Schedule 1-A deductions for tips, overtime, car loan interest and seniors
Hours
8
2.8 Credits
Key content
Child tax credit and credit for other dependents, EITC, child and dependent care, education credits (AOTC, LLC), saver's credit, premium tax credit (Form 8962)
Hours
10
2.9 Other taxes and payments
Key content
Additional Medicare tax, net investment income tax, household employment, underpayment penalty (Form 2210), withholding and estimated payments
Hours
4
2.10 Special situations
Key content
Sale of a home, foreign income basics (when to refer out), decedent returns, amended returns (1040-X), injured/innocent spouse
Hours
5
2.11 State returns
Key content
Residency, part-year and nonresident returns, common state add-backs; a module built for the academy's home state
Hours
5
Mastery gates
Each module ends in a return or quiz that must score 85% or higher (returns: zero material errors) before the next unlocks.
Level 2 capstone
Three full returns prepared on paper and checked against a key: a family with EITC and child credits, a gig worker with Schedule C, and a retiree with Social Security, RMDs and the senior deduction. One must include a due-diligence file.
Current-law spotlight for the 2027 filing season (tax year 2026), taught as a dedicated lab and refreshed every fall
| Item | 2026 amount or rule |
|---|---|
| Standard deduction | $16,100 single, $32,200 joint, $24,150 head of household |
| Child tax credit | $2,200 per child, up to $1,700 refundable |
| EITC maximum | $8,231 with three or more children |
| SALT deduction cap | $40,000 base, rising 1% a year through 2029 and phasing down at higher incomes |
| Schedule 1-A deductions | Tips (up to $25,000), overtime premium (up to $12,500; $25,000 joint), car loan interest (up to $10,000), senior deduction ($6,000 per person 65+); 2025–2028, with income phase-outs |
| New in 2026 | Charitable deduction for non-itemizers (up to $1,000; $2,000 joint) and a 0.5%-of-AGI floor for itemized charitable gifts |
Standard deduction
2026 amount or rule
$16,100 single, $32,200 joint, $24,150 head of household
Child tax credit
2026 amount or rule
$2,200 per child, up to $1,700 refundable
EITC maximum
2026 amount or rule
$8,231 with three or more children
SALT deduction cap
2026 amount or rule
$40,000 base, rising 1% a year through 2029 and phasing down at higher incomes
Schedule 1-A deductions
2026 amount or rule
Tips (up to $25,000), overtime premium (up to $12,500; $25,000 joint), car loan interest (up to $10,000), senior deduction ($6,000 per person 65+); 2025–2028, with income phase-outs
New in 2026
2026 amount or rule
Charitable deduction for non-itemizers (up to $1,000; $2,000 joint) and a 0.5%-of-AGI floor for itemized charitable gifts
Amounts come from the IRS's 2026 inflation adjustments (Rev. Proc. 2025-32) and the One Big Beautiful Bill Act; confirm each against the final 2026 forms before teaching.
Ready to become a return-ready preparer?
Tell us which track interests you and we'll be in touch.