MCCCD Official Course Competencies:

ACC121  2009 Fall - 9999

Income Tax Preparation

1.         Calculate the taxpayer’s income tax. (I)

2.         Determine the filing status of a taxpayer in various situations. (I)

3.         Identify dependency tests and exemption requirements. (I)

4.         Prepare federal forms 1040, 1040A, related schedules, and supporting forms for individual taxpayers. (I)

5.         Prepare returns using tax preparation software. (I)

6.         Determine the taxpayer’s itemized deductions and standard deduction. (I, V)

7.         Identify taxable and tax-exempt income of a taxpayer. ( II)

8.         Determine the tax treatment of income from retirement plans. ( III)

9.         Calculate the taxpayer’s business income and related expenses for a sole proprietorship. (III, IV, VII)

10.       Identify items which may be deducted from the gross income of a taxpayer. (IV)

11.       Describe available credits and circumstances in which they apply. (VI)

12.       Determine other taxes due. (VI, IX)

13.       Identify capital gains and losses for a taxpayer. ( VIII)

14.       Identify taxes withheld and estimated payments. (IX)

MCCCD Official Course Outline:

ACC121  2009 Fall - 9999

Income Tax Preparation

I.          The Individual Income Tax Return

            A.        History and objectives of the tax system

            B.         The tax formula for individuals

            C.        Who must file

            D.        Filing status and tax computation

            E.         Personal and dependency exemptions

II.         Gross Income and Exclusions

            A.        The nature of gross income

            B.         Interest and dividend income

            C.        Alimony

            D.        Prizes and awards

            E.         Annuities and life insurance

            F.         Gifts and inheritances

            G.        Scholarships

            H.        Meals and lodging

            I.          Social Security benefits

            J.          Unemployment compensation

III.       Business Income and Expenses and Retirement Plans

            A.        Rental income and expenses

            B.         Passive loss limitations

            C.        Net operating losses

            D.        Individual Retirement Accounts (IRAs)

            E.         Simplified Employee Pensions (SEPs)

            F.         Section 401k plans

IV.       Self-Employed and Employee Expenses

            A.        Classification of deductions

            B.         Travel and entertainment expenses

            C.        Office in the home

            D.        Dues, subscriptions, and publications

            E.         Special clothing and uniforms

            F.         Schedule C

V.        Itemized Deductions

            A.        Medical expenses

            B.         Taxes and interest

            C.        Contributions

            D.        Casualty and theft losses

            E.         Miscellaneous deductions

            F.         Moving expenses

            G.        Hobby losses

VI.       Credits and Special Taxes

            A.        Child tax credit

            B.         Earned income credit

            C.        Child and dependent care credit

            D.        Education tax credit

            E.         Individual alternative minimum tax

VII.      Tax Accounting Period and Depreciation Methods

            A.        Accounting periods

            B.         Depreciation

            C.        Modified Accelerated Cost Recovery System (MACRS)

            D.        Election to expense

            E.         Intangibles

VIII.     Capital Gains and Losses

            A.        What is a capital asset?

            B.         Holding period

            C.        Calculation of gain or loss

            D.        Section 1231 gains and losses

            E.         Depreciation recapture

            F.         Installment sales

            G.        Like-kind exchanges

            H.        Sale of a personal residence

IX.       Withholding, Estimated Payments, and Payroll Taxes

            A.        Withholding methods

            B.         Estimated payments

            C.        Federal Tax Deposit System

            D.        Employer reporting requirements

            E.         Self-employment tax