ACC 330 Module Six Assignment

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Southern New Hampshire University *

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330

Subject

Accounting

Date

Jun 4, 2024

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4

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ACC 330 Module Six Assignment Template Directions Begin by filing in the high-level information for each of the clients in the first category. Then, dig deeper by opening the 1040s for each of the primary taxpayers. This will provide deeper insights into their income streams, deductions, and tax credits. Complete all three parts of the comparison for the first scenario. Then, repeat this process using a second category. Once you have completed the table below you will have enough information to determine which category interests you most. Choose one category to use for Project Two, and enter the number of the client set you plan to use under #4 below. 1. Complete the high-level view of the client tax profiles. a. Identify the category type. b. Identify the client IDs. c. Enter taxpayer’s names. d. Enter filing status. e. Enter the spouse’s name if applicable. f. List the dependents. 2. Perform an analysis based on reviews of the additional information from client profiles and Form 1040. a. Income Streams: Consider all forms of income, look at the AGI or taxable income. b. Deductions: Review deductions for the tax year. c. Tax Credits: Review tax credits for the tax year. 3. List multiple tax planning factors. 4. Make a category selection . Client Set 1 5. Provide a written analysis of the Tax items in the table, about 2-3 paragraphs
Tax Category Comparison Table of Two Client Profile Sets Client Profile Set # Profile Set #1 Profile Set #2 Category/ Scenario Type Schedule C and Estimated Tax Payments Education Credits Client ID # 1142 1143 1129 1132 Primary Taxpayer Name Joanna Roman Malik Ali Trilby Keller Robert James Filing Status Single Single Married Filing Jointly Married Filing Jointly Spouse’s name (if applicable) N/A N/A David Keller - 1130 Nora James - 1133 Dependents (list) N/A N/A Wyatt Keller - 1131 Kris James - 1134 Nolan James - 1135 1040 Income Streams (list) Income from Self- employment (unique clothing designer) Income from Social Security, Retirement Account through Fidelity, and Gig work through Uber Income from wages – Accounting Manager (Trilby) Income from wages – Bookstore Manager (David) Income from wages – Psychologist (Robert) Income from wages – Office Manager (Nora) 1040 Deductions (list) Standard Deduction, Self- employment tax, Qualified Business Income Deduction Standard Deduction, Self- employment tax, Qualified Business Income Deduction Standard Deduction, IRA Deduction Itemized Deduction 1040 Tax Credits (List) Earned Income Credit N/A Child Tax Credit, Education Credit, American Opportunity Tax Credit Child Tax Credit Tax planning topics to research Fees for consignment (local and Etsy), Business property depreciation, Travel Commercial auto insurance, Vehicle taxes, Estimated tax payments Can no longer claim AOTC; Eligible for Lifetime Learning Credit; Potential for itemized Could start and IRA w/ contributions up to $6,000 annually; Potential increase in
Tax Category Comparison Table of Two Client Profile Sets (List) expenses, Estimated tax payments, Cost of Goods Sold (COGS) for design business deduction by using medical costs, mortgage interest, charitable contributions and state/local taxes. itemized deductions by using medical expenses and increasing charitable contributions; Eligible for AOTC for each child; Eligible for Lifetime Learning Credit. Works Cited 26 USC 3: Tax tables for individuals, December 3, 2023. 26 USC 3: Tax tables for individuals (house.gov) 26 USC 63: Taxable income defined, December 3, 2023. 26 USC 63: Taxable income defined (house.gov) 26 USC 1401: Rate of tax, December 3, 2023. 26 USC 1401: Rate of tax (house.gov) 26 USC 1402: Definitions, December 3, 2023. 26 USC 1402: Definitions (house.gov) Form 1040 Instructions, (year 2021) *2021 Instruction 1040 (irs.gov) Form 8995-A Instructions, (year 2021) 2021 Instructions for Form 8995-A (irs.gov) Form Schedule C Instructions, (year 2021) 2021 Instructions for Schedule C (irs.gov) Form SE Instructions, (year 2021) 2022 Instructions for Schedule SE (irs.gov) Publication 17 (2022), Your Federal Income Tax, Publication 17 (2022), Your Federal Income Tax | Internal Revenue Service (irs.gov) About Form 8867, Paid Preparer’s Due Diligence Checklist | Internal Revenue Service. (n.d.). https://www.irs.gov/forms-pubs/about-
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form-8867 Credits and Deductions | Internal Revenue Service. (n.d.). https://www.irs.gov/credits-and-deductions Credits & Deductions for Individuals | Internal Revenue Service. (n.d.). https://www.irs.gov/credits-deductions-for-individuals