10101123Tax 1
Course Information
Description
Introduction to federal and state income tax laws with an emphasis on personal taxes. These areas are included: income, deductions, credits, depreciation, gains and losses, and sole proprietorship taxation. The course requires the preparation of a series of individual income tax returns.
Total Credits
4
Course Competencies
  1. Examine the overview of tax structure
    Assessment Strategies
    Satisfactorily complete and submit all homework assignments when due
    Pass an open book exam with at least 70% correct using only a calculator
    Criteria
    Follow the tax formula.
    Compute a federal tax liability.
    Identify different filing statuses.
    Identify criteria for dependents.
    Determine the standard deduction and its use in calculating a tax liability.

  2. Identify gross income inclusions/exclusions
    Assessment Strategies
    Satisfactorily complete and submit all homework assignments when due
    Pass an open book exam with at least 70% correct using only a calculator
    Criteria
    Identify gross income inclusions.
    Identify gross income exclusions.
    Calculate above-the-line deductions.
    Calculate below-the-line deductions.

  3. Identify personal itemized deductions
    Assessment Strategies
    Satisfactorily complete and submit all homework assignments when due
    Pass an open book exam with at least 70% correct using only a calculator
    Criteria
    Identify medical expenses that qualify as itemized deductions.
    Identify taxes that qualify as itemized deductions.
    Identify interest that qualifies as itemized deductions.
    Identify charitable contributions that qualify as itemized deductions.
    Identify casualty and theft losses that qualify as itemized deductions.

  4. Determine business/self-employment income
    Assessment Strategies
    Satisfactorily complete and submit all homework assignments when due
    Pass an open book exam with at least 70% correct using only a calculator
    Criteria
    Determine business income.
    Determine business deductions.
    Determine self-employment tax.
    Determine passive income, including net rental income.
    Identify the tax reporting of flow-through entities.
    Calculate depreciation on business assets.

  5. Calculate taxes from sales of property
    Assessment Strategies
    Satisfactorily complete and submit all homework assignments when due
    Pass an open book exam with at least 70% correct using only a calculator
    Criteria
    Calculate a realized, recognized, and deferred gains or losses.
    Identify Section 1231, 1245, and 1250 assets.
    Calculate like-kind exchanges.
    Calculate short-term and long-term gains and losses.
    Distinguish between the sale of capital assets and the sale of business assets.

  6. Calculate credits
    Assessment Strategies
    Satisfactorily complete and submit all homework assignments when due
    Pass an open book exam with at least 70% correct using only a calculator
    Criteria
    Differentiate between refundable credits and non-refundable credits.
    Differentiate between credits that can be carried over versus non-carryover credits.
    Calculate child and dependent care credits, education credits, earned income credits, retirement savings credits, child tax credits, and other credits.
    Calculate credit phase-outs.

  7. Calculate payroll taxes
    Assessment Strategies
    Satisfactorily complete and submit all homework assignments when due
    Pass an open book exam with at least 70% correct using only a calculator
    Criteria
    Calculate federal income tax withholding.
    Calculate Federal Insurance Contributions Act (FICA) taxes.
    Calculate unemployment taxes.
    Identify the reporting and paying of payroll taxes by an employer.

  8. Determine the tax impact of retirement accounts
    Assessment Strategies
    Satisfactorily complete and submit all homework assignments when due
    Pass an open book exam with at least 70% correct using only a calculator
    Criteria
    Identify employer-sponsored and individual-sponsored plans.
    Calculate phaseouts and maximum allowable contributions.
    Calculate taxable income on distributions from plans, when applicable.
    Calculate taxable income on distributions from annuities.