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General Information

Course ID (CB01A and CB01B)
ACCTD067.
Course Title (CB02)
Individual Income Taxation
Course Credit Status
Credit - Degree Applicable
Effective Term
Fall 2023
Course Description
A study of current federal and California state income tax law and the procedures for preparing an individual's tax return.
Faculty Requirements
Course Family
Not Applicable

Course Justification

The course belongs on the Accounting AA degree and is a CSU transferable undergraduate course. This course covers the specialized fields of tax accounting and helps to prepare students for accounting and related business jobs in this area. It also provides tax information and perspective on tax issues in business decisions for the general business student.

Foothill Equivalency

Does the course have a Foothill equivalent?
Yes
Foothill Course ID
ACTG F067.

Course Philosophy

Formerly Statement

Formerly Statement
(Formerly ACCT D067A.)

Course Development Options

Basic Skill Status (CB08)
Course is not a basic skills course.
Grade Options
  • Letter Grade
  • Pass/No Pass
Repeat Limit
0

Transferability & Gen. Ed. Options

Transferability
Transferable to CSU only

Units and Hours

Summary

Minimum Credit Units
5.0
Maximum Credit Units
5.0

Weekly Student Hours

TypeIn ClassOut of Class
Lecture Hours5.010.0
Laboratory Hours0.00.0

Course Student Hours

Course Duration (Weeks)
12.0
Hours per unit divisor
36.0
Course In-Class (Contact) Hours
Lecture
60.0
Laboratory
0.0
Total
60.0
Course Out-of-Class Hours
Lecture
120.0
Laboratory
0.0
NA
0.0
Total
120.0

Prerequisite(s)

Corequisite(s)

Advisory(ies)

  • ESL D272. and ESL D273., or ESL D472. and ESL D473., or eligibility for EWRT D001A or EWRT D01AH or ESL D005.
  • Pre-algebra or equivalent (or higher), or appropriate placement beyond pre-algebra

ACCT D001A or ACCT D01AH (may be taken concurrently)

Limitation(s) on Enrollment

Entrance Skill(s)

General Course Statement(s)

Methods of Instruction

Lecture and visual aids

Discussion of assigned reading

Discussion and problem solving performed in class

Homework and extended projects

Collaborative learning and small group exercises

Collaborative projects

Assignments

  1. Written and computerized homework requiring problem solving of tax issues at the federal and state of California level.
  2. Required reading from text and supplemental materials from the Franchise Tax Board.
  3. Comprehensive case - preparation of complex individual tax return, both federal and state of California.

Methods of Evaluation

  1. Homework problems including the calculation of taxable income, itemized deductions, business income and expenses on the Form Schedule C, rental income and deductions on Form Schedule E and determination of tax liability for both federal and state of California purposes, which requires students to demonstrate ability to analyze and apply taxation law.
  2. Midterms with multiple choice questions as well as problem solving to demonstrate student's ability to analyze, summarize and apply taxation law.
  3. Comprehensive case - preparation of a comprehensive federal and state of California income tax return involving multiple income items, itemized deductions, capital gain transactions, adjustments to income, calculation of credits allowed and tax liability calculation, which demonstrates student's ability to research, analyze and apply taxation laws.
  4. Final exam to include multiple choice and problem components which require the students to analyze individual tax situations involving a variety of scenarios in which the application of various tax laws, both federal and California, are examined, and in which students demonstrate the ability to summarize, integrate and analyze concepts that have been introduced and studied throughout the course.

Essential Student Materials/Essential College Facilities

Essential Student Materials: 
  • None.
Essential College Facilities:
  • Access to computer lab with income tax software

Examples of Primary Texts and References

AuthorTitlePublisherDate/EditionISBN
*Whittenburg, G., Altus-Buller, M, Gill, Steven "Income Tax Fundamentals", 2017 Edition (current edition). Stamford, CT, Cengage Learning Publishing, 2016.
Spilker, Ayers, Barrick, Outslay, Robinson, Weaver,Worksham, "Taxation of Individuals", 2017 Edition(current edition). New York, NY, McGraw-Hill Publishing, 2016
Resources,including Forms and Publications from the Franchise Tax Board website, www.ftb.ca.gov.

Examples of Supporting Texts and References

AuthorTitlePublisher
Commerce Clearing House. "US Master Tax Guide", (current edition). New York, NY: Commerce Clearing House Publishers, current edition.
Magazines: "Forbes", "Fortune", "Business Week", "National Tax Reporter".
Newspapers: "Wall Street Journal".

Learning Outcomes and Objectives

Course Objectives

  • Explain how tax policy becomes federal and state of California law.
  • List the federal and state of California requirements to file a personal income tax return.
  • Analyze and compute gross income at the federal and state of California levels.
  • Analyze and compute exclusions from income at the federal and state of California levels.
  • Recognize and compute personal deductions from income for federal and state of California.
  • Recognize and compute tax credits and prepayments for federal and state of California.
  • Calculate gains and losses on sale, exchange, and disposal of property at the federal and state of California levels.
  • Plan and explain how to legally minimize taxes through financial planning at the federal and state of California levels.
  • Recognize and explain ethics in taxation issues.

CSLOs

  • Demonstrate knowledge of how to assess and evaluate information required to file a federal and state tax return and be able to prepare and analyze an individual income tax return from various income sources, adjustments to income, itemized deductions and tax credits.

Outline

  1. Explain how tax policy becomes federal and state of California law.
    1. History of income tax in the United States and California.
    2. Internal Revenue Code and California Revenue and Tax Code.
    3. Federal and California Case law.
  2. List the federal and state of California requirements to file a personal income tax return.
    1. Introduction to the tax process.
    2. Overview of the individual tax computation.
    3. The standard deduction, filing status, and requirements to file.
    4. Personal exemption deductions and inflation adjustments.
    5. Filing the individual return.
  3. Analyze and compute gross income at the federal and state of California levels.
    1. Gross income: general concepts and methods of reporting.
    2. Special inclusions: interest, dividends, and annuities.
    3. Miscellaneous inclusions: rents and alimony.
    4. Assignments of income and the allocable parental ("Kiddie") tax.
  4. Analyze and compute exclusions from income at the federal and state of California levels.
    1. Donative transfers and life insurance.
    2. Accident, health, and other compensation payments.
    3. Employee benefits.
    4. Miscellaneous exclusions.
  5. Recognize and compute personal deductions from income for federal and state of California.
    1. The medical expense deduction.
    2. Interest deductions.
    3. Deductions for taxes and charitable contributions.
    4. Personal casualty and theft losses and the moving expense deduction.
    5. Employee business expenses and other miscellaneous deductions.
    6. Miscellaneous deductions for adjusted gross income.
  6. Recognize and compute tax credits and prepayments for federal and state of California.
    1. Credits available to lower-income taxpayers.
    2. Child and dependent care credit.
    3. Miscellaneous credits.
    4. Estimated tax payments for individuals.
  7. Calculate gains and losses on sale, exchange, and disposal of property at the federal and state of California levels.
    1. Concepts of gain, loss, and amount realized.
    2. Determining the adjusted basis of property.
    3. Capital assets and the netting process.
    4. Installment sales.
    5. Sale of a personal residence.
    6. Short term and long term basis.
  8. Plan and explain how to legally minimize taxes through financial planning at the federal and state of California levels.
    1. Tax deferral of income.
    2. Tax advantaged investments.
  9. Recognize and explain ethics in taxation issues.
    1. Reporting issues.
    2. Allocation of expense.
    3. Timing of deductions.
    4. Legal and professional sanctions.
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