Loading...
Chapter 13: Income Taxes

Overview

The chapter opens with two sections that discuss how taxes are determined—by finding the total income, taxable income, and tax liability from the tax table. Forms are introduced, with the student filling out the 1040 from the perspective of different filers. Other forms are then discussed, including the following: Schedule A (Itemized Deductions), Schedule B (Interest and Ordinary Dividends), Schedule C (Profit or Loss from Business [not included in exercises]), Schedule D (Capital Gains and Losses [not included in exercises]), and Form 2441 (Child and Dependent Care Expenses). State income tax is computed both as a flat tax and using graduated rates. Emphasis for state taxes is on an initial entry from the federal form.

What you can expect to learn

After this chapter you should be able to
1. understand the income tax process.
2. complete the federal income tax Form 1040, including Schedules B and D and Form 2441.
3. complete the federal income tax Form 1040, including Schedules A and C.
4. complete state income tax forms.

Activity List