taxes, Accounting Basics

Assignment Help:
ACCT225-1204A-01 Introduction to Tax
Task Name: Phase 5 Individual Project
Deliverable Length: All applicable tax forms and a Word document of 1–2 pages
Details: Weekly tasks or assignments (Individual or Group Projects) will be due by Monday and late submissions will be assigned a late penalty in accordance with the late penalty policy found in the syllabus. NOTE: All submission posting times are based on midnight Central Time.

Scenario:

The Park family consists of the following:

•Jackie O. Park; age 40; DOB: 3/23/1970; SSN: 123-45-6789; business analyst; single; unmarried
•Leslie T. Park; age 16; DOB: 05/19/1994; SSN: 234-56-7890; daughter; high-school student; lives at home
•Alex K. Park; age 12; DOB: 09/01/1998; SSN: 345-67-8901; son; middle-school student; lives at home
Pertinent information:

•Address: 132 Oakbrook Drive, Houston, Texas 77091
•The Parks do not want to contribute to the presidential election campaign
•Jackie does not receive child support. She pays all of the household expenses including the upkeep of Leslie and Alex. Only Jackie can claim Leslie and Alex as dependents.
•Her income tax rate is 13.05%. (Note that this rate is different from the self-employment tax rate.)
•Jackie also operates a realty company on a part-time basis. Her income from this business is from real estate sales during the year. She is a sole proprietor and her company’s name is Jaleal Realty Company. Jackie rents a small office to operates this business.
Jackie had the following earnings on her W-2:

•Wages: $55,159
•Federal tax withheld: $7,460
•Social Security tax withheld: $3,420
•Medicare tax withheld: $800
Jackie had the following income (as shown on Form 1099) and expenses from her business:

•Total income reported on Form 1099 was $23,000 and came from the real estate commissions earned from home sales.
Expenses:


Rent
7,200

Travel expenses
2,200

Advertising
2,345

Supplies
955

Office expenses
750

Telephone
720

Internet expense
540

Broker license
75

Legal and professional
1,000

Miscellaneous
150



Other tax data:

•Texas state’s general sales tax deduction allowed is $924.
•Jackie received $610 of interest income from her bank.
•She donated $230 in cash to her church during the year.
•Real estate taxes paid on her residence were $1,980, and the mortgage interest paid to her bank in New York, NY on the primary residence for the year was $16,000.
•Medical expenses for the family were as follows:
?medical insurance premium $3,244
?payments for doctor’s visits $1,760
?$850 was paid for dentists
?$230 for prescription drugs
Assignment Guidelines

To prepare Jackie O. Park''s tax return without the aid of Tax preparation software, complete the following steps:

1.Ensure that you have an Adobe Reader installed on your computer to open and use the downloadable IRS forms.
2.Determine which forms are necessary for Jackie O. Park''s tax return.
3.Go to the IRS Web site and download the fill-in tax forms that you will need to complete: Form 1040 and the appropriate schedules.
4.Complete all necessary downloaded fill-in forms on the computer and save.
5.Collate your completed forms; save in PDF form, and upload for grading.
After completing her return, you take the time to review it for errors by going through your checklist that includes the following questions. Make note of all answers in a Word document of 1–2 pages to keep with her tax return:

1.What is the filing status for Jackie O. Park?
2.What is her adjusted gross income?
3.Does Jackie qualify for the Earned Income Credit?
4.Is she required to file a state income tax form?
5.What is her income tax liability or refund?
6.What tax law applies to Jaleal Realty Company?
7.What is her business loss or income, and where will this figure be shown on Jackie’s Form 1040?
8.Where should Jackie mail her federal tax return (assuming she is not e-filing).
Submit this document along with her tax return.




Objective: •Describe the basic concepts of tax law as it affects businesses.
•Demonstrate and synthesize the basic rules of U.S. tax law applicable to individual tax payers.
•Prepare a U.S. individual tax return utilizing IRS Form 1040 with appropriate schedules without the aid of tax preparation software












The key project assignment must be submitted to the submitted assignments area under the correct task heading. This includes the phase 4 IP and phase 5 IP assignments. If you submit the phase 4 IP assignment after the task list due date, then you will most likely not receive feedback until after the Phase 5 IP is due. Please do not wait on the feedback from your phase 4 IP to submit your phase 5 IP.



One page of APA formatted text (Times New Roman, 12 pt font double spaced without extra spaces between the paragraphs) is equal to approximately 300 words.



The phase 4 and phase 5 IP use 2010 Tax forms. These can be found at IRS.gov. Do NOT use tax forms for any other year. Ignore Schedule M, Making Work Pay

















Related Discussions:- taxes

Explain in detail about the merchandise inventory, Explain in detail about ...

Explain in detail about the MERCHANDISE INVENTORY Cost of merchandise purchased during an accounting period is debited to Purchases account. To determine VALUE of the goods on

Determine the income statement columns of worksheet, Determine the Income S...

Determine the Income Statement columns of Worksheet Income Statement columns of the worksheet would comprise the amounts from Adjusted Trial Balance columns which are expenses

Perpetual Inventory Systems, How do you do journal entries for an item boug...

How do you do journal entries for an item bought on credit and then later returned and the total selling price was 4,275.

Example of adjustments for accrued items, Q. Example of Adjustments for acc...

Q. Example of Adjustments for accrued items? For instance assume Micro Train Company has some money in a savings account. On 2010 December 31 the cash on deposit has earned one

Explain both management accounting and financial accounting, Management acc...

Management accounting and financial accounting Accounting is generally seen as having two different strands which are: ? Management accounting that seeks to meet accounting

A light truck is purchased on january 1 at a cost of $27, A light truck is ...

A light truck is purchased on January 1 at a cost of $27,000. It is expected to serve for eight years and have a salvage value of $3,000. Calculate the depreciation expense for t

Describe in brief about the wholesalers, Describe in brief about the Wholes...

Describe in brief about the Wholesalers They buy goods in bulk from manufacturers and sell them to retailers, other schools, wholesalers and other non-profit institutions, and

Heww inc., Heww Inc., issued a $50,000, 10 year bond with a stated interes...

Heww Inc., issued a $50,000, 10 year bond with a stated interest rate of 6%. Assume interest payments are made semi-annually. What is the selling price of the bond if the mark

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd