ACC 261 - Income Tax Accounting

1. Assess filing status
   1. Identify marital status
   2. Select filing status relating to taxpayer marital status
   3. Determine dependents and how dependents affect filing status
2. Calculate personal income tax
   1. Summarize gross income
   2. Explain the various types of deductions
   3. Explain the various tax credits available
   4. Discuss special taxes to which individuals may be subject
   5. Discuss exceptions to general rules in the tax law
   6. Compute taxable income
   7. Determine tax liability
3. Explain depreciation for tax purposes
   1. Discuss the importance of accounting periods
   2. Discuss MACRS
   3. Explain rules for listed property
   4. Explain section 179 election to expense
4. Explain capital gains and losses for tax purposes
   1. Discuss difference between ordinary assets and capital assets
   2. Discuss definition of capital assets
   3. Discuss holding periods for capital assets
   4. Tax ramifications of selling capital assets
5. Explain payroll taxes
   1. Summarize federal withholding tax procedures
   2. Explain the concept of the FICA tax
   3. Illustrate the computation of self-employment taxes
   4. Examine the necessary tax forms
6. Describe the estimated tax procedure
7. Examine the various required tax forms for reporting income
8. Review the nature of partnership taxation
   1. Define what constitutes a partnership
   2. Describe the rules for establishing partner?s original basis
   3. Explain procedures for reporting partnership income or loss
9. Discriminate between corporate and personal income taxes
   1. Discuss corporate tax law
   2. Define corporate tax rates
   3. Compute corporate tax liability
10. Summarize pertinent internal revenue service procedures
    1. Relate the structure of the internal revenue service
    2. Explain the internal revenue service audit procedure
    3. Outline types of penalties imposed on taxpayers
11. Contrast Federal and Iowa income taxes
    1. Discuss Iowa tax law
    2. Demonstrate differences between federal statutes
    3. Prepare a complete Federal and Iowa tax return
12. Experiment with tax preparation software on computer