Unit Originally Created By:
Mike Morris
Income Tax Preparation (VITA)
Part of Course: Accounting Model
Unit Overview / Details
The Income Tax unit prepares students with skills for entry-level positions in income tax preparation. Classroom instruction includes an overview of income taxes; related laws and regulations; and completion of individual income tax forms and schedules. Integrated throughout the unit are career preparation standards, which include basic academic skills, communication, interpersonal skills, problem solving, safety, technology, and other industry standards based employment skills.
Instructional Hours
- Classroom
- 2 Weeks
Content / Concepts
- Taxation at personal and business levels
- Purpose and use of taxes
- Use of resources in basic tax law relevant to taxpayers
- Basic tax law as it pertains to completing the Form 1040 online using Taxwise
- Professionalism in working with the public
- Importance of honesty, respect, and confidentiality in working with the public
- Online testing for certification by the IRS
- Communication skills development in listening and asking open-ended questions, and procedures for answering questions
CTE Standards
- California Career and Technical Education Standards: 47
- All Standards
- Full Details
Lessons in this Unit
This lesson is designed to introduce students to the purpose and benefits of the Tax System.
Questions this lesson is designed to address include: Why should we pay federal and state taxes? Understand the importance of income taxes in our society, along with the illegality and consequences of noncompliance.
The government provides public goods and services for the community as a whole. To pay its bills, the government needs revenue, or a source of income. The money that the federal government uses to pay its bills comes mostly from taxes. Taxes shift resources from private individuals and businesses to the government.
Individual federal income tax affects everyone in the USA and all citizens should know why taxes are collected and what happens to our money. Using data collected from the Internal Revenue Service, students learn and practice an inquiry of individual federal and state income taxes. The lesson is divided into sections designed to address specific questions:
- Why do we have an individual income tax?
- What is individual federal income tax? How is it paid?
- What is a perfect tax structure?
- What is the correlation between tax burden and income groups?
- “What if” the tax structure were changed?
- What effects would a different tax structure have on taxpayers?
- What effect would a different tax structure have on the government?
The government provides public goods and services for the community as a whole. To pay its bills, the government needs revenue, or a source of income. The money that the federal government uses to pay its bills comes mostly from taxes. Taxes shift resources from private individuals and businesses to the government.
- Activity #1 Part 1
- 3 Minutes
- Activity #2 Part 1
- 5 Minutes
- Activity #1 Part 2
- 5 Minutes
- Activity #2 Part 2
- 5 Minutes
- Activity #3
- 15 Minutes
- Activity #4
- 20 Minutes
- Activity #5
- 5 Minutes
- Activity #6
- 8 Minutes
- Activity #7
- 15 Minutes
- Extra Credit Option - no class time allotted
- 0 Minutes
This lesson covers responsibilities for paying taxes, voluntary compliance, tax avoidance, tax evasion, and a short segment on the underground economy.
This is based on the IRS Lesson plans for teachers, with its on-line tools and materials. (Initial lesson plan can be found at: http://www.irs.gov/app/understandingTaxes/student/whys_thm01_les03.jsp#quickCheck)
- Activity #1: Launch
- 5 Minutes
- Activity #2: Pre-Test
- 10 Minutes
- Activity #3: Vocabulary Terms
- 20 Minutes
- Activity #4: Define Tax Avoidance and Tax Evasion
- 0 Hours
- Activity #5: Check for Understanding: What Happens
- 5 Minutes
- Activity #6: Voluntary Compliance
- 3 Hours
