MCCCD Program Description

Income Tax Preparation

Course: ACC121

First Term: 2018 Fall

Lec + Lab 3.0 Credit(s) 3.0 Period(s) 3.0 Load
Subject Type: Occupational
Load Formula: T - Lab Load

Description: Preparation of and practical experience in preparing individual federal income tax returns using computer software.

MCCCD Official Course Competencies
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 Competencies must be coordinated with the content outline so that each major point in the outline serves one or more competencies. MCCCD faculty retains authority in determining the pedagogical approach, methodology, content sequencing, and assessment metrics for student work. Please see individual course syllabi for additional information, including specific course requirements.

MCCCD Official Course Outline
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

MCCCD Governing Board Approval Date: 12/9/2008

All information published is subject to change without notice. Every effort has been made to ensure the accuracy of information presented, but based on the dynamic nature of the curricular process, course and program information is subject to change in order to reflect the most current information available.