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This course will cover the fundamentals of income tax preparation. We will discuss the reasons for learning tax preparation, the methods for learning tax preparation, and the tools. The course will compare different tax types and explain tax terminology, including what a progressive tax is and the differences between a marginal tax rate and an average tax rate. Learners will approach tax preparation using three central angles: tax forms, a tax formula, and tax software.

You do not need tax software to take the course, but practicing with tax software is a powerful tool for learning. We will talk about what is new for the tax year 2022. We will create a tax worksheet using Excel, although you may also use Google Sheets. We will use the Excel Worksheet to work on problems using a tax formula method.

This powerful tool will help you:

• Break down the complex income tax formula (Income, Adjustments, AGI, Deductions, Taxable Income, Credits, Other Taxes, Payments).
• Navigate common income, deduction (Standard vs. Itemized), and credit types (including refundable and non-refundable).
• Understand progressive tax rates, marginal vs. average tax rates, and their implications for planning.
• Explore relevant tax forms (like the Form 1040 and related schedules) and resources (IRS website).
• Gain practical skills for verifying data input and running tax scenarios.
• Get an introduction to important concepts like tax authority and Circular 230 regulations for practitioners.

By creating your own Excel tax formula worksheet, you'll develop a conceptual framework that enhances your understanding, improves accuracy, and provides flexibility as tax laws change. Whether for personal use, business planning, or aspiring to a tax career, this course equips you with practical knowledge and a versatile tool.