AFSP cheat sheet

Most state insurance CE rules require a fixed number of credit hours per renewal cycle (commonly 24 credit hours every 2 years); the exact number and cycle length are set by the state, not by a federal body.

CE credit is typically granted per hour of instruction, with 1 credit hour equaling 50 minutes of classroom or approved online instruction in many jurisdictions.

Licensees generally must complete a state-mandated ethics course as part of the total CE requirement; the ethics hours are usually a subset of, not an addition to, the total.

Courses must be approved by the state insurance department or an approved sponsor before credit is awarded; unapproved coursework earns no credit even if the subject matter is relevant.

CE credit is reported to the state by the course provider or sponsor, typically within a set number of days after course completion; the licensee is responsible for verifying that credit posted.

A licensee who fails to complete CE by the deadline may face license expiration, a late fee, a fine, or a required remediation period, depending on state rules.

Carryover of excess CE hours into the next cycle is permitted in some states and prohibited in others; the state rule controls, and excess hours do not automatically roll over.

Exemptions or extensions may apply for certain licensees (for example, newly licensed individuals, military service, or documented hardship), but they must generally be requested and approved by the state.

Recordkeeping: licensees should retain certificates of completion for a period set by state rule (commonly several years) in case of audit, since providers may not retain records indefinitely.

Marginal tax brackets are progressive: each rate applies only to income within its bracket, so total tax is the sum of tax computed at each bracket rate, not the top rate applied to all income.

Long-term capital gains and qualified dividends are taxed at preferential rates (0%, 15%, or 20% depending on taxable income), while short-term gains are taxed as ordinary income.

The holding period for long-term treatment is more than one year; property held exactly one year or less is short-term.

Contributions to traditional IRAs and 401(k)s may be deductible or pre-tax, while Roth contributions are made with after-tax dollars and qualified withdrawals are tax-free.

Distributions from traditional retirement accounts are generally taxable as ordinary income; early withdrawals before age 59½ may trigger a 10% additional tax unless an exception applies.

Required minimum distributions (RMDs) generally begin at age 73 for individuals born 1951–1959 and age 75 for those born 1960 or later; failure to take an RMD can result in an excise tax penalty.

The standard deduction reduces taxable income and varies by filing status; taxpayers may instead itemize deductions such as mortgage interest, state and local taxes (subject to a cap), and charitable contributions.

Social Security benefits may be partially taxable depending on combined income, calculated as adjusted gross income plus tax-exempt interest plus one-half of benefits.

Gifts above the annual exclusion amount generally require filing a gift tax return and count against the lifetime exemption; the recipient of a gift does not owe income tax on the gift.