The second major project within this course is completing the tax return for Daniel B. Butler and Freida C. Butler. The case study for this project will be in Cengage, and you will need to practice filling in the forms before you complete the project. Daniel B. Butler and Freida C. Butler emailed you back with all of the necessary documents you need to do their tax return. This compressed (zipped) file includes the forms you will need to fill out for the tax return as well as the template you will use to complete the Tax Planning section of the project. The Tax Planning section is important since there are often changes to a client’s tax situation. It is important to address concerns your clients may have regarding upcoming changes to their income or deductions. Pay close attention to the details your clients have provided to you along the way so you can best assist them in planning ahead for future years. Remember, tax liability is driven by taxable income and deductions. If clients anticipate a change in either, their tax liability will likely be affected in some way.

Determine the correct number of exemptions to be included. Keep in mind that exemptions are listed on page 1 and page 2 of Form 1040. [ACC-330-02] III. Prepare Schedule A and record total itemized deductions on page 2 of Form 1040. Schedule A may include the items below. [ACC-330-02] A. Medical and Dental Expenses B. Taxes You Paid C. Interest You Paid D. Gifts to Charity E. Casualty and Theft Losses F. Job Expenses and Certain Miscellaneous Deductions G. Other Miscellaneous Deductions H. Total Itemized Deductions IV. Prepare Schedule B and complete lines 8a, 8b, 9a, and 9b as needed on page 1 of Form 1040. Schedule B may include the items below. [ACC-330-02] A. Interest B. Ordinary Dividends V. Properly prepare Schedule E and complete line 17 on page 1 of Form 1040. Note: Page 1 of Schedule E does not require input. [ACC-330-02] A. Part II B. Part IV VI. Calculate total income and adjusted gross income based on the information provided. [ACC-330-02] VII. Calculate taxable income on page 2 of Form 1040. [ACC-330-02] VIII. Utilize the provided tax rate schedules provided for you in Cengage and complete the Qualified Dividends and Capital Gains Tax Worksheet. Be sure to transfer your total tax to page 2 of Form 1040. [ACC-330-02] IX. Complete applicable lines related to tax liability, including the total tax line. You will need to calculate the total tax (line 63), paying close attention to any lines on page 2 of Form 1040 relating to tax and/or lines that require a subtotal. [ACC-330-02] X. Complete the payments section of page 2 of Form 1040. [ACC-330-02] XI. Complete the refund or amount you owe section of page 2 of Form 1040 based on whether the individuals are to receive a refund or owe additional tax. [ACC-330-02] XII. Complete the Tax Planning questions presented in the assignment. [ACC-330-02]