Standard |
ACC 151 –Individual Income Tax
Provides instruction in Federal and State income tax return preparation for individuals. Topics include: dependency tests, gross income inclusions and exclusions, adjustments to income, itemized deductions, purchase and sale of principal residence, earned income credit, child care credit, small business (sole proprietor) income/loss and tax liability.
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Competency Areas |
Hours
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Dependency Tests |
Class |
2 |
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Gross Income Inclusions and Exclusions |
D. Lab |
2 |
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Adjustments to Income |
P. Lab/O.B.I. |
0 |
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Itemized Deductions |
Credit |
3 |
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Purchase and Sale of Principal Residence |
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Earned Income Credit |
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Child Care Credit |
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Small Business (Sole Proprietor) Income/Loss |
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Tax Liability |
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Prerequisite: |
ACC 101 |
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Corequisite: |
Course Guide |
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Competency |
After completing this
section, the student will: |
Hours |
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Class |
D.Lab |
P.Lab/ O.B.I. |
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DEPENDENCY TESTS |
2 |
2 |
0 |
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Dependents |
Define who qualifies as a dependent for a given taxpayer. |
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GROSS INCOME INCLUSIONS AND EXCLUSIONS |
3 |
2 |
0 |
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Income inclusions |
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Income exclusions |
Define forms of income that are not included in gross income for tax purposes. |
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ADJUSTMENTS TO INCOME |
2 |
2 |
0 |
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Income adjustments |
Define and record components of adjustments to gross income. |
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Compute adjusted gross income. |
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ITEMIZED DEDUCTIONS |
2 |
2 |
0 |
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Record in place of the standard deduction the total of all allowable deductions for a given taxpayer in arriving at taxable income. |
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PURCHASE AND SALE OF PRINCIPAL RESIDENCE |
2 |
2 |
0 |
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Record the deferred gain (if any) on appropriate forms from sale of principal residence. |
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EARNED INCOME CREDIT |
1 |
2 |
0 |
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Identify who qualifies for earned income credit. |
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Record earned income credit. |
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CHILD CARE CREDIT |
1 |
2 |
0 |
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Identify who qualifies for child care credit. |
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Record child care credit on appropriate form. |
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SMALL BUSINESS (SOLE PROPRIETOR) INCOME/LOSS |
4 |
3 |
0 |
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Record all income and expenses for sole proprietor on Schedule C in arriving at 1050 income |
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Calculate self-employment tax on Schedule SE, where applicable |
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TAX LIABILITY |
3 |
3 |
0 |
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Determine appropriate number of exemptions. |
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Calculate taxable income. |
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Calculate taxes due. |
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Determine refund due or payment owed to the IRS/state. |
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Suggested Resources |
Hopson, J., et al. (1993). Income tax fundamentals for 1992 (3rd ed.). Homewood, IL: Irwin.
Langenferdner, H. Q., et al. (1993). Federal income taxation. Cincinnati: South-Western.
Langenferder, H. Q., et al. (1993). Federal income taxation (diskette). Cincinnati: South-Western.