Income Tax Procedures and Preparation Course Design

Transcription

1 Income Tax Procedures and Preparation Course Design Course Information Organization Division Eastern Arizona College Business Course Number BUS 131 Title Credits 3 Developed by Lecture/Lab Ratio Transfer Status Activity Course Income Tax Procedures and Preparation Stephen Cullen, Ph.D. 3 Lecture/0 Lab n-transferable CIP Code Assessment Mode Semester Taught GE Category Separate Lab Awareness Course Intensive Writing Course Prerequisites ne Pre/Post Test (18 Questions/100 Points) Offered Upon Request ne Educational Value Adult learners who wish to become proficient in preparing tax forms for individuals. Description This course is designed for students who aspire to learn the concepts needed to prepare income tax returns for individuals including the determination of income, deduction, credits, and taxable income. Supplies tebook and pencils Eastern Arizona College Income Tax Procedures and Preparation

2 Competencies and 1. Identify Forms 1040EZ, Form 1040A, and 1040 a. Accurately complete Form 1040 EZ b. Accurately complete Form 1040A c. Accurately complete Form 1040 d. Complete the heading signature section of Form 1040EZ, Form 1040A, and Form 1040 e. Round cents to the nearest dollar and percentages to two places past the decimal point o Outlining the difference between 1040EZ, Form 1040A, and Form 1040 o Indicating where the Presidential Election Campaign Fund information is located on the 1040EZ, Form 1040A, and Form 1040 o Demonstrates when to apply forms 1040EZ, Form 1040A, nd Form 1040 o Demonstrates when to complete the Presidential Election Campaign Fund section on form 1040EZ, Form 1040A, and Form Define taxable and non taxable income a. Identify taxable income using tax table b. Explain the commonly used accounting methods and periods o Understanding the basic information found on Form W-2 and successfully enter the appropriate information on Form 1040EZ o Accurately determines tax liability using the Tax Table o Accurately computes Adjusted Gross Income (AGI) o Accurately computes tax credits o Accurately identifies taxpayer's dependents o Accurately identifies taxpayer's exemptions o Accurately computes Federal Income Tax Withheld o Accurately computes Medicare Tax Withheld o Accurately computes Social Security Tax Withheld o Accurately computes Social Security Wages Eastern Arizona College Income Tax Procedures and Preparation

3 o Accurately computes State or Local Income Tax Withheld o Accurately computes Tax Liability o Accurately computes Taxable Income 3. Report tip income on tax return a. Use Form 4137 to compute the social security and Medicare tax due on unreported tip income o Outlining that the fact that all tips income are taxable o Details the responsibility of the tax professional to reminding the taxpayer that must comply with the law and that a tax credit could apply if all tip income in reported 4. Identify Child Related Tax Credits a. Understand when a child qualifies as a dependent o Explaining when and how dependent tax credits apply o Accurately records tax deduction on the income tax return 5. Assist the taxpayer to evaluate savings plan a. Define and illustrate Coverall Education Saving Plan (ESA) b. Describe a qualified tuition program (QTP) c. Define IRA and Roth IRA d. Compare and contrast IRA and Roth IRA e. Report the conversion of a traditional IRA to a Roth IRA f. Determine whether a rollover may made from one tax-favored account to another for the current beneficiary or a qualified family member g. Determine the portion of distribution, if any, from certain tax-favored accounts that are subject to income tax and/or a penalty tax Eastern Arizona College Income Tax Procedures and Preparation

4 o Report the conversion of a traditional IRA to a Roth IRA o Report the conversion of a traditional IRA to a Roth IRA o Determine whether a rollover may made from one tax-favored account to another for the current beneficiary or a qualified family member o Determine the portion of distribution, if any, from certain tax-favored accounts that are subject to income tax and/or a penalty tax o Accurately records pertinent tax information on the income tax form 6. Determine which types of assets quality for expense deduction a. Compute the allowable deduction and enter in on the tax return b. Determine year of disposition of asset c. Define Section 179 Expense Deduction and properties associated with qualified property o Accurately calculating the depreciation of qualifying assets o Accurately records the depreciation tax deduction on the appropriate income tax form 7. Identify allowable employee business expenses a. Computer transportation expenses using the regular (actual expenses) method and enter the necessary information on the appropriate tax form b. Determine if a taxpayer has qualified travel and/or sales expenses and compute the deduction c. Determine if a taxpayer has qualified home-office expenses and compute and record the deduction o Accurately calculating the tax deduction for travel, sales, home office, and transportation expense o Accurately records the amount of tax deduction on the appropriately income tax form Types of Instruction Lecture Completion of current tax forms Eastern Arizona College Income Tax Procedures and Preparation

5 Grading Information Grading Scale A=90%-100% B=80%-89% C=70-79% D=60%-69% F=Below 60% Eastern Arizona College Income Tax Procedures and Preparation