Finance Foundations: Income Taxes

Learn how to file your US income taxes. Discover everything you need to know before filing your personal or professional tax return and get tips to help with tax planning.

Introduction

• Learn the fundamentals of income taxes
• What you should know

1. Income Tax Overview

• The history of income taxes
• Different kinds of taxes
• How many sets of books does a large company keep?

2. A Simple Income Tax System

• "Taxman" by the Beatles
• Tax brackets
• Average and marginal tax rates
• Tax deductions and tax credits
• Ordinary income and capital gains income

3. Common Tax Loopholes and General Income Tax Policy

• Who gets tax breaks?
• Examples of individual tax breaks
• Examples of business tax breaks
• The biggest individual tax loopholes in the US tax code
• The biggest corporate tax loopholes in the US tax code
• What is the optimal income tax rate?
• The relationship between tax revenues and spending

4. Completing a Basic Tax Return

• Della and Dee Stice doing people's taxes
• Joint Form 1040: Entering personal information
• Joint Form 1040: Computing adjusted gross income (AGI)
• Joint Form 1040: Computing the total tax
• Joint Form 1040: Additional tax payment or tax refund
• Itemized deductions
• Single Form 1040: Computing Adjusted Gross Income (AGI)
• Single Form 1040: Additional tax payment or tax refund
• Online tax returns

5. Principles of Tax Planning

• Tesla and tax planning
• What is tax planning?
• Strategy 1: Shift income from one time period to another
• Strategy 2: Shift income from one pocket to another
• Strategy 3: Change the character of the income

6. Corporate Income Taxes

• How large are corporate income taxes?
• Ownership structure: Sole, partnership, and corporation
• Corporate income tax issues
• Multinational corporate income tax issues

7. Income Taxes: Planning vs. Evasion

• Reporting foreign income on US income taxes
• Tax evasion: Beware of illegal strategies, part 1
• Tax evasion: Beware of illegal strategies, part 2

8. Common Income Tax Issues for Small Businesses

• Tax issues at a family grocery store
• Common tax issues for small businesses, part 1
• Common tax issues for small businesses, part 2
• Is your goal to minimize your income taxes?

Review and Conclusion

• Taxes can be complex, but you have the basic tools
• Concluding income tax advice