Assignment 1: Assisting a Family with their Tax Returns

Assignment 1: Assisting a Family with their Tax Returns

Imagine that you are preparing taxes for a local tax service provider. A married couple named Judy and Walter Townson

have come to you to seeking assistance with their federal income taxes. During your meeting with the Townsons, you gather

the following information:

• They are both 55 years of age.

• They have two daughters and one son. One daughter (age 25) is married with children. One daughter (age 20) is

living at home and attending college. Their son (age 16) is a junior in high school.

• They are currently paying for their college-student daughter to attend school full time.

• Judy is employed as a teacher and makes $60,000 a year. She used $500 of her personal funds to purchase books

and other supplies for her classroom.

• Walter is employed as a CPA and makes $100,000 a year.

• They provided you a 1099-INT which reported $4,500 in interest, of which $500 was savings bond interest.

• They provided you a 1099-DIV which reported $300 in dividends.

• They received a state tax refund last year of $385.

• They provided you a list of expenses including:

o Doctor’s bills, $800

o Prescriptions, $400

o New glasses, $2,000

o Dental bills, $560

o Braces, $5,000

o Property taxes for their two cars of $800, which included $50 in decal fees

o Real estate taxes of $4,500

o Mortgage interest of $12,000

o Gifts to charities, $1,000

o GoFundMe contribution to local family in need, $100

o Tax preparation fees for last year’s taxes, $400

Consider the most beneficial way for Judy and Walter to file their federal income tax return. Prepare a brief written

summary that addresses the following:

• Estimated taxable income for Judy and Walter (please show computations).

• Summary of tax return, including any suggestions or tax planning considerations.

• Explain how you determined the filing status, dependents, and use of standard/itemized deduction.

Note: The summary should be no more than 500 words and should be uploaded as a Word document with a cover page via

the Blackboard assignment tab in Week 6.

The specific course learning outcomes associated with this assignment is:

• Complete a tax analysis that is informed by tax law and strategies to determine the most beneficial way for a

client/family to file their federal income tax return.

R U B R I C S

Points: 155 Assignment 1: Assisting a Family with their Tax Returns

Criteria

Unacceptable

Below 60% F

Meets

Minimum

Expectations

60-69% D

Fair

70-79% C

Proficient

80-89% B

Exemplary

90-100% A 1. Submit a complete tax computation and estimate of taxable income.

Weight: 30%

Did not submit tax computation or submitted computation and estimate contains inaccurate or incomplete information.

Submitted tax computation and estimate is insufficient; several fields contain inaccurate or incomplete information.

Submitted tax computation and estimate is partially correct: some fields contain inaccurate or incomplete information.

Submitted tax computation and estimate is satisfactory; a few fields contain inaccurate or incomplete information.

Submitted tax computation and estimate is thorough; 0- 2 fields contain inaccurate or incomplete information.

2. Submit a summary of tax return, including suggestions or tax planning considerations.

Weight: 30%

Did not submit or submitted an incomplete summary of tax return and did not submit or submitted incomplete suggestions or tax planning considerations.

Submitted an insufficient summary of tax return and submitted insufficient suggestions or tax planning considerations.

Submitted a partial summary of tax return and submitted partial suggestions or tax planning considerations.

Submitted a satisfactory summary of tax return and submitted satisfactory suggestions or tax planning considerations.

Submitted a thorough summary of tax return and submitted thorough suggestions or tax planning considerations

3. Explain how you determined the filing status, dependents, and use of standard/itemized deduction.

Weight: 30%

Did not submit or incompletely explained how you determined the filing status, dependents, and use of standard/ itemized deduction.

Insufficiently explained how you determined the filing status, dependents, and use of standard/ itemized deduction.

Partially explained how you determined the filing status, dependents, and use of standard/ itemized deduction.

Satisfactorily explained how you determined the filing status, dependents, and use of standard/ itemized deduction.

Thoroughly explained how you determined the filing status, dependents, and use of standard/ itemized deduction.

4. Clarity, writing mechanics, and formatting requirements

Weight: 10%

Serious and persistent errors in grammar, spelling, punctuation, or formatting.

Numerous errors in grammar, spelling, punctuation, or formatting.

Partially free of errors in grammar, spelling, punctuation, or formatting.

Mostly free of errors in grammar, spelling, punctuation, or formatting.

Error free or almost error free in grammar, spelling, punctuation, and formatting.