Need Someone To Do My Class, BUS-FP4065, Income Tax Concepts & Strategies
/ Business Finance – Accounting
Part 1: Provide evidence of requirements for John’s tax return from an official primary source.
1. Interactive Tax Assistant (ITA)
Answers to Your General Filing Questions
What is my filing status?
Your filing status is single
You are not eligible for any other filing status.
2. Interactive Tax Assistant (ITA)
Answers to Your General Filing Questions
Do I need to file a tax return?
You are not required to file a tax return for 2014 You should file a tax return for 2014
The return may generate a refund.
How to file a return:
Prepare your return on your own Choose a tax preparer
Mandatory Filing: If your return’s gross income is equal to, or exceeds, $10,150.
3. John is a dependent as he lives at home with his parents and they provide over fifty percent of
John’s financial support. John works part-time to save money for college and has no other
income source. He is also covered by his parent’s health insurance so he has out of pocket
expense for insurance.
4. According to the IRS Interactive Tax Assistance, the simplest tax form John can use will be a 1040EZ. He’s not claiming any deductions, credits, or income items that require a Form 1040 or 1040A. (You can generally use the 1040EZ if:
Your taxable income is below $100,000;
Your filing status is single or married filing jointly; You are not claiming any dependents; and Your interest income is $1,500 or less.
If you can’t use Form 1040EZ, you may qualify to use the 1040A if:
Your taxable income is below $100,000; You have capital gain distributions; You claim certain tax credits; and You claim adjustments to income for IRA contributions and student loan interest.
If you cannot use the 1040EZ or the 1040A, you’ll probably need to file using the 1040. The reasons you must use the 1040 include:
Your taxable income is $100,000 or more; You claim itemized deductions; You are reporting self-employment income; and You are reporting income from sale of a property.)Assessment 2 Self-Employment Business Income–Schedule C
Overview
Analyze official rules and instructions to complete a Schedule C and related required tax forms, to reflect income and deductions related to self-employment as a sole proprietor.
Note: Completing a tax form requires specific steps that need to be executed in a sequence. The assessments in this course are presented in sequence and must be completed in order. Incorrect entries in previous assessments will result in incorrect entries in future assessments. Do not complete Assessment 2 until you have submitted and received faculty feedback for Assessment 1.
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Context
“The government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.” — Ronald Reagan.
If an individual is searching for a tax strategy to offset his or her income from a primary job, being self-employed on the side is quite possibly one of the best options, along with being a real estate property owner or an investor. Each of these has the advantage of allowing an individual to reduce current income by any losses suffered from freelancing, renting out property, or investing.
However, the individual takes on additional work for the filing process. Schedule C must be completed, a task that requires an individual to know much more about the tax rules for recognizing income and maximizing expenses than many persons are willing to invest the time to research.
Questions to Consider
To deepen your understanding, you are encouraged to consider the questions below and discuss them with a fellow learner, a work associate, an interested friend, or a member of the business community.
• What are the financial advantages of self-employment? • Can a person have multiple Schedule Cs?
Details Attempt 1 Available Attempt 2
Attempt 3
Tools
Frank Torres 2
Page 1 of 3Assessment 2 – BUS-FP4065 – Summer 2017 – Section 02
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• What are the financial implications of hiring employees versus independent contractors?
Resources
Required Resources
The following resources are required to complete the assessment.
Internet Resources Access the following resources by clicking the links provided. Please note that URLs change frequently. Permissions for the following links have been either granted or deemed appropriate for educational use at the time of course publication.
IRS.gov is the homepage for the federal IRS Web site. Use the tabs at the top of the page to navigate the site. The Interactive Tax Assistant and Tax Trails are tools that walk you through a series of questions to find answers to tax questions. Download the appropriate forms and publications from the IRS Web site to complete this assessment.
• IRS.gov. (n.d.). Retrieved from http://www.irs.gov/ • IRS. (n.d.). Interactive tax assistant. Retrieved from http://www.irs.gov/uac/Interactive-Tax-
Assistant-(ITA)-1 • IRS. (n.d.). Tax trails. Retrieved from www.irs.gov/Individuals/Tax-Trails%2d%2d%2dMain-Menu
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Assessment Instructions
Note: The assessments in this course are presented in sequence and must be completed in order. In Assessments 2–5, you will work step-by-step toward completing a 1040 tax return and all the necessary related forms, based on a provided scenario. Do not complete Assessment 2 until you have submitted and received faculty feedback for Assessment 1.
Calculating correct entries for self-employment requires significant research. For those are who self-employed, entries from self-employment tax forms are necessary to complete the 1040 form.
For this assessment, use information and publications from IRS.gov and the other IRS resources linked in the Resources under the Required Resources heading to research the regulations and complete the appropriate self-employment schedules, based on the provided scenario.
Complete the following:
• Read the information provided in the scenario below. • Download the appropriate forms and publications from IRS.gov to complete this
assessment. • Complete the entries on tax forms required for a sole proprietorship return. • Analyze official rules and instructions to correctly compute SE tax and SE deduction.
◦ 1040sc.
Page 2 of 3Assessment 2 – BUS-FP4065 – Summer 2017 – Section 02
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◦ 1040sse. • Determine whether Jacob’s business is eligible for any tax credits.
◦ Is Jacob’s business eligible to use the Work Opportunity Credit and Disabled Access Credit?
• Determine eligible business deductions. • Interpret official rules and instructions to record correct entries on all related self-employed
schedules. • Submit the tax forms.
Scenario
Jacob Weaver is a contractor operating as a sole proprietorship (EIN 99-3456789).
• 2014 net income: $133,000. • Clients owe him a total of $53,000 for work completed in 2014. • 2014 estimated tax payments: $18,000. • He is using a bedroom in his house as a home office. The room is 15′ x14′. • He has one half-time employee, Martin, who had been unemployed since returning from
Afghanistan and is disabled. ◦ Martin worked for Jacob for 20 hours a week, for 41 weeks of 2014. ◦ Martin earned $10,500. ◦ Jacob had to spend $7,350 for disabled access equipment for Martin.
How to use the scoring guide
Self-Employed Business Income–Schedule C Scoring
Guide
Use the scoring guide to enhance your learning.
VIEW SCORING GUIDE
This button will take you to the next available assessment attempt tab, where you will be able to submit your assessment.
SUBMIT ASSESSMENT
Page 3 of 3Assessment 2 – BUS-FP4065 – Summer 2017 – Section 02
10/25/2017https://courserooma.capella.edu/webapps/blackboard/content/listContent.jsp?content_id=…Self-Employed Business Income–Schedule C Scoring Guide
ACTIVITY
Analyze official information to identify tax forms required for a sole proprietorship.
Analyze official rules and instructions to determine eligible business tax credits.
Analyze official rules and instructions to determine eligible deductions.
Analyze official rules and instructions to correctly compute SE tax and SE deduction.
Interpret official rules and instructions to record correct entries on all tax forms.
Page 1 of 1Self-Employed Business Income–Schedule C Scoring Guide
10/25/2017https://courserooma.capella.edu/bbcswebdav/institution/BUS-FP/BUS-FP4065/150701/Scoring_…Assessment 3 Inclusions, Exclusions, and AGI
Overview
Apply the rules associated with inclusions and exclusions to an individual’s gross income and apply another set of code rules to determine a taxpayer’s AGI.
Note: Completing a tax form requires specific steps that need to be executed in a sequence. The assessments in this course are presented in sequence and must be completed in order. Incorrect entries in previous assessments will result in incorrect entries in future assessments. Do not complete Assessment 3 until you have submitted and received faculty feedback for Assessment 2.
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Context
“I don’t know what to do or where to turn in this taxation matter. Somewhere there must be a book that tells all about it, where I could go to straighten it out in my mind. But I don’t know where the book is, and maybe I couldn’t read it if I found it.” — Warren G. Harding, the 29th President of the United States, 1921–1923.
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Questions to Consider
To deepen your understanding, you are encouraged to consider the questions below and discuss them with a fellow learner, a work associate, an interested friend, or a member of the business community.
The primary purpose of the Internal Revenue Service is to raise revenue for the government. However, the U.S. Congress has chosen to exempt certain income from taxation, such as scholarships, gifts, life insurance proceeds, municipal bond interest, and employee fringe benefits.
• Why you believe Congress has provided these exemptions to taxpayers? • Which of the additional exemptions would you challenge? • Which of the additional exemptions do you agree with?
Details Attempt 1 Available Attempt 2
Attempt 3
Tools
Frank Torres 2
Page 1 of 3Assessment 3 – BUS-FP4065 – Summer 2017 – Section 02
10/25/2017https://courserooma.capella.edu/webapps/blackboard/content/listContent.jsp?course_id=_…
Resources
Required Resources
The following resources are required to complete the assessment.
Internet Resources Access the following resources by clicking the links provided. Please note that URLs change frequently. Permissions for the following links have been either granted or deemed appropriate for educational use at the time of course publication.
IRS.gov is the homepage for the federal IRS Web site. Use the tabs at the top of the page to navigate the site. The Interactive Tax Assistant and Tax Trails are tools that walk you through a series of questions to find answers to tax questions. Download the appropriate forms and publications from the IRS Web site to complete this assessment.
• IRS.gov. (n.d.). Retrieved from http://www.irs.gov/ • IRS. (n.d.). Interactive tax assistant. Retrieved from http://www.irs.gov/uac/Interactive-Tax-
Assistant-(ITA)-1 • IRS. (n.d.). Tax trails. Retrieved from www.irs.gov/Individuals/Tax-Trails%2d%2d%2dMain-Menu
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Assessment Instructions
Note: The assessments in this course are presented in sequence and must be completed in order. In Assessments 2–5, you will work step-by-step toward completing a 1040 tax return and all the necessary related forms, based on a provided scenario. Do not complete Assessment 3 until you have submitted and received faculty feedback for Assessment 2. Incorrect entries in Assessment 2 affect the entries in Assessment 3.
For this assessment, use information and publications from IRS.gov and the other IRS resources linked in the Resources under the Required Resources heading to determine the adjusted gross income (AGI) for Jacob and Taylor Weaver, based on the provided scenario.
Complete the following:
• Read the information in the scenario below. • Download the appropriate forms and publications from IRS.gov. • Enter information from Assessment 2, Schedules C and SE, into the 1040 form. • Apply the rules for adjustments to adjusted gross income.
◦ Enter applicable information from the scenario into the 1040 form. ◦ Interpret official rules and instructions to record correct entries on the tax form.
• Calculate the AGI for the Weavers. • Submit the tax form.
Scenario
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• Jacob and Taylor Weaver, ages 45 and 42 respectively, are married and are filing jointly in 2014.
◦ They have three children, Ashley, age 9; Patrick, age 6; and John, age 18. ◦ Social Security numbers are: Jacob, 222-33-4444; Taylor, 555-66-7777; Ashley, 888-
99-1234; Patrick, 789-56-4321; John, 123-45-6789. • Taylor works part-time as a paralegal.
◦ She earned $26,000 in 2014. • Taxes withheld: $4,200 withheld. • Estimated tax payments: $18,000. • $350 paid with their 2013 state tax return. • Jacob and Taylor bought their first house in 2014.
◦ Home mortgage interest: $7,246. ◦ Property tax: $2,230.
• Federal income withholding: $2,350. • Charities: $4,500. • $435 to rent a moving truck. • $8,000 to put new siding on the house. • $11,600 for child care expenses ($5,800 for each child).
◦ It was paid to Lil Tigers Daycare, 1115 S. Garrison St., Muncie, IN 47305 (EIN 98- 7654321).
• Taylor is a part-time student at Ball State University in Muncie. ◦ She received a 1098-T indicating tuition and fees for 2014 in the amount of $6,011.
• Health insurance for the family, through Taylor’s job, cost $6000 for all 12 months of 2014. ◦ They paid deductibles and co-payments of $550.
How to use the scoring guide
Inclusions, Exclusions, and AGI Scoring Guide
Use the scoring guide to enhance your learning.
VIEW SCORING GUIDE
This button will take you to the next available assessment attempt tab, where you will be able to submit your assessment.
SUBMIT ASSESSMENT
Page 3 of 3Assessment 3 – BUS-FP4065 – Summer 2017 – Section 02Inclusions, Exclusions, and AGI Scoring Guide
ACTIVITY
Analyze official rules and instructions to correctly calculate deductible self-employment taxes.
Interpret official rules and instructions to record correct entries on tax forms.
Apply rules and instructions to correctly compute AGI for the year.
Page 1 of 1Inclusions, Exclusions, and AGI Scoring Guide
10/25/2017https://courserooma.capella.edu/bbcswebdav/institution/BUS-FP/BUS-FP4065/150701/Scoring_…Inclusions, Exclusions, and AGI Scoring Guide
ACTIVITY
Analyze official rules and instructions to correctly calculate deductible self-employment taxes.
Interpret official rules and instructions to record correct entries on tax forms.
Apply rules and instructions to correctly compute AGI for the year.
Page 1 of 1Inclusions, Exclusions, and AGI Scoring Guide
10/25/2017https://courserooma.capella.edu/bbcswebdav/institution/BUS-FP/BUS-FP4065/150701/Scoring_…Itemized Deductions – Schedule A Scoring Guide
ACTIVITY
Apply laws and rules for charitable contributions on Schedule A tax form.
Apply laws and rules for interest deductions on Schedule A tax form.
Apply laws and rules for medical expenses on Schedule A tax form.
Apply laws and rules for state and local deductions on Schedule A tax form.
Interpret official rules and instructions to record correct entries on tax forms.
Page 1 of 1Itemized Deductions – Schedule A Scoring Guide
10/25/2017https://courserooma.capella.edu/bbcswebdav/institution/BUS-FP/BUS-FP4065/150701/Scoring_…Assessment 5 Tax Credits on 1040 to Reduce Tax Liability
Overview
Determine eligibility for available tax credits and complete an official worksheet for each credit, to demonstrate eligibility.
Note: Completing a tax form requires specific steps that need to be executed in a sequence. The assessments in this course are presented in sequence and must be completed in order. Incorrect entries in previous assessments will result in incorrect entries in future assessments. Do not complete Assessment 5 until you have submitted and received faculty feedback for Assessment 4.
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Context
“When a new source of taxation is found it never means, in practice, that the old source is abandoned. It merely means that the politicians have two ways of milking the taxpayer where they had one before.” — Henry Louis Mencken, one of the most influential American writers of the early twentieth century.
Politicians have a penchant for finding ways for doing one of two things:
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Questions to Consider
To deepen your understanding, you are encouraged to consider the questions below and discuss them with a fellow learner, a work associate, an interested friend, or a member of the business community.
• How do tax credits directly benefit an individual taxpayer? • Which is more advantageous: a deduction or a tax credit? • What can you do if you have already filed your tax return and you discover you are eligible for
a tax credit?
Details Attempt 1 Available Attempt 2
Attempt 3
Tools
Frank Torres 2
Page 1 of 4Assessment 5 – BUS-FP4065 – Summer 2017 – Section 02
10/25/2017https://courserooma.capella.edu/webapps/blackboard/content/listContent.jsp?course_id=_…
Resources
Required Resources
The following resources are required to complete the assessment.
Internet Resources Access the following resources by clicking the links provided. Please note that URLs change frequently. Permissions for the following links have been either granted or deemed appropriate for educational use at the time of course publication.
IRS.gov is the homepage for the federal IRS Web site. Use the tabs at the top of the page to navigate the site. The Interactive Tax Assistant and Tax Trails are tools that walk you through a series of questions to find answers to tax questions. Download the appropriate forms and publications from the IRS Web site to complete this assessment.
• IRS.gov. (n.d.). Retrieved from http://www.irs.gov/ • IRS. (n.d.). Interactive tax assistant. Retrieved from http://www.irs.gov/uac/Interactive-Tax-
Assistant-(ITA)-1 • IRS. (n.d.). Tax trails. Retrieved from www.irs.gov/Individuals/Tax-Trails%2d%2d%2dMain-Menu
SHOW MORE
Assessment Instructions
Note: The assessments in this course are presented in sequence and must be completed in order. In Assessments 2–5, you will work step-by-step toward completing a 1040 tax return and all the necessary related forms, based on a provided scenario. Do not complete Assessment 5 until you have submitted and received faculty feedback for Assessment 4.
This assessment will require significant research and critical thinking to complete each required form successfully. An incorrect entry on one form will create incorrect entries in other forms.
There are two parts to this assessment. Be sure to complete both parts and submit the necessary materials.
• Part 1: Determine eligible tax credits by completing official worksheets. • Part 2: Complete Schedule A and the 1040.
Preparation
• Read the information provided in the scenario below. • Download the following tax forms and instructions from IRS.gov, linked in the Resources
under the Required Resources heading: ◦ 1040. ◦ Schedule A. ◦ 2441. ◦ 3800. ◦ 5884.
Page 2 of 4Assessment 5 – BUS-FP4065 – Summer 2017 – Section 02
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◦ 6251. ◦ 8826.
Part 1
Use the information in the scenario, on IRS.gov, and in the interactive IRS tools to interpret official rules and instructions to determine available tax credits.
• Complete an official worksheet for each tax credit to demonstrate eligibility. • Submit each tax credit worksheet.
Part 2
Use the information in the scenario, on IRS.gov, and in the interactive IRS tools to Interpret official rules and instructions to complete the following:
• Complete Schedule A. • Enter data from Schedule A into the 1040. • Apply the rules and tax tables to calculate the tax owed and the amount of any refund. • Submit Schedule A and the completed 1040.
Scenario
• Jacob and Taylor Weaver, ages 45 and 42 respectively, are married and are filing jointly in • 2014.
◦ They have three children, Ashley, age 9; Patrick, age 6; and John, age 18. ◦ Social Security numbers are: Jacob, 222-33-4444; Taylor, 555-66-7777; Ashley, 888-
99-1234; Patrick, 789-56-4321; John, 123-45-6789. • Jacob is self-employed as a contractor.
◦ 2014 net income: $133,000. ◦ Clients owe him a total of $53,000 for work completed in 2014. ◦ 2014 estimated tax payments: $18,000.
• Taylor works part-time as a paralegal. ◦ She earned $26,000 in 2014. ◦ Federal income withholding: $2,350.
• Weavers $350 paid with their 2013 state tax return. • Jacob and Taylor bought their house in 2014.
◦ Home mortgage interest: $7,246. ◦ Property tax: $2,230.
• Charities: $4,500. • $435 to rent a moving truck. • $8,000 to put new siding on the house. • $11,600 for child care expenses ($5,800 for each child).
◦ It was paid to Lil Tigers Daycare, 1115 S. Garrison St., Muncie, IN 47305 (EIN 98- 7654321).
• Taylor is a part-time student at Ball State University in Muncie. ◦ She received a 1098-T indicating tuition and fees for 2014 in the amount of $6,011.
• Health insurance for the family, through Taylor’s job, cost $6000 for all 12 months of 2014. ◦ They paid deductibles and co-payments of $550.
• Dental insurance for the family was $1200. • Car insurance for the family car was $600.
Page 3 of 4Assessment 5 – BUS-FP4065 – Summer 2017 – Section 02
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How to use the scoring guide
Tax Credits on 1040 to Reduce Tax Liability Scoring
Guide
Use the scoring guide to enhance your learning.
VIEW SCORING GUIDE
This button will take you to the next available assessment attempt tab, where you will be able to submit your assessment.
SUBMIT ASSESSMENT
Page 4 of 4Assessment 5 – BUS-FP4065 – Summer 2017 – Section 02
10/25/2017https://courserooma.capella.edu/webapps/blackboard/content/listContent.jsp?course_id=_…Tax Credits on 1040 to Reduce Tax Liability Scoring Guide
ACTIVITY
Interpret official rules and instructions to determine available tax credits.
Analyze tax rules to complete tax credit worksheets to prove eligibility.
Apply laws and rules to correctly enter data on Schedule A.
Apply rules and tax tables to record the correct tax owed on the 1040.
Correctly calculate the amount of a refund on the 1040.
Page 1 of 1Tax Credits on 1040 to Reduce Tax Liability Scoring Guide
10/25/2017https://courserooma.capella.edu/bbcswebdav/institution/BUS-FP/BUS-FP4065/150701/Scoring_…Applying the IRS Code Rules Scoring Guide
ACTIVITY
Correctly calculate the initial basis, allowed losses, and ending at-risk amounts.
Correctly explain how to treat a loss on a federal income tax return.
Correctly calculate what can be deducted on a final income tax return.
Correctly calculate the loss disallowed by at-risk rules and how much of the loss is disallowed by the passive loss rules.
Correctly explain the tax effect in a specified scenario for the last year and the current year.
Correctly calculate itemized deductions for AMT purposes and identify the amount of the AMT adjustment.
Page 1 of 1Applying the IRS Code Rules Scoring Guide
10/25/2017https://courserooma.capella.edu/bbcswebdav/institution/BUS-FP/BUS-FP4065/150701/Scoring_…Applying the IRS Code Rules Scoring Guide
ACTIVITY
Correctly calculate the initial basis, allowed losses, and ending at-risk amounts.
Correctly explain how to treat a loss on a federal income tax return.
Correctly calculate what can be deducted on a final income tax return.
Correctly calculate the loss disallowed by at-risk rules and how much of the loss is disallowed by the passive loss rules.
Correctly explain the tax effect in a specified scenario for the last year and the current year.
Correctly calculate itemized deductions for AMT purposes and identify the amount of the AMT adjustment.
Page 1 of 1Applying the IRS Code Rules Scoring Guide
10/25/2017https://courserooma.capella.edu/bbcswebdav/institution/BUS-FP/BUS-FP4065/150701/Scoring_…
