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Personal & Corporate Taxation SeminarPresented by: Nyarayi Chibanda,
Jennifer Piepenbrink
Personal Taxes- Income Tax
• What you need Income Tax Preperation
• W-2 form
• Yearly gross income
• Taxes for state and federal government
• Medicare
• Social security
• 401K contributions
Personal Taxes- Income Tax
• What you need
• 1099 Form
• Anything that is not recorded as wages, salary or tips
• Interest paid from bank accounts
• Deductions
• Donations to non-profit organizations
• Some medical bills can be deductions
Personal Taxes- Income Tax
• Auditing
• Types of auditing
• Random selection
• Document matching
• Related examinations
• Process of being audited
• Consequences of the audited found guilty
Personal Taxes- Income Tax
• Choose the form that fits you best
• Full year legal residents of Wisconsin
• Students earning only wages, salary
• Students who are not legal residents of Wisconsin
• Filing income tax online
• E-filing is the most accurate and easiest method of filing tax returns
• Refunds are available in as few as five business days
• Refunds can be deposited directly into a savings or checking account
Personal Taxes- Income Tax
• Options for filing your taxes
• www.irs.gov
• www.revenue.wi.gov
• Tax professionals
• Volunteer Income Tax Assistance (VITA)
• Free tax preparation for low and moderate income individuals
• VITA also helps disabled and those who have limited ability speaking English
Personal Taxes- Income Tax
• Tax Brackets
• Families generally file Form 1A.
Tax Bracket Couples Filing Jointly
Tax Bracket Marginal Tax Rate
$0+ 4.60%
$14,090+ 6.15%
$28,180+ 6.50%
$100,000+ 6.50%
$211,330+ 6.75%
$310,210+ 6.75%
Personal Taxes- Income Tax
• Tax Brackets
• Filing as single, generally Form 1 is appropriate.
Tax Bracket Single Filers
Tax Bracket Marginal Tax Rate
$0+ 4.60%
$10,570+ 6.15%
$21,130+ 6.50%
$100,000+ 6.50%
$158,500+ 6.75%
$232,660+ 7.75%
Corporate Taxation
• Gross income versus net income (profits)
• Double Taxation:
• The income is taxed as a separate legal entity
• The shareholders’ dividends are taxed on an income basis.
Let’s get started
• Sign up for an Employer Identification Number on www.irs.gov
• State Regulations
• NOTE: A new EIN at the change of ownership/ structure
Tax Preparation Software
• The initial e-filing application phase
• Publication 4162
• Validation
E-Registration Process
• What is e-services?
Is a package of products designed for tax professionals and taxpayers
• Includes:
• Registration
• IRS e-file Application
• e-filing tools & products
• Registered User Portal (RUP)
How does a corporation register?
• Responsible Official (RO)
• Designated User (DU)
• Go to www.IRS.gov
IRS E-Services for Large Corporations
• A corporation
assets that equal to $10 million
250 returns filed annually
• MeF Internet XML (1120 Corporate Tax Return)
Completing the e-filing process
• Electronic Transmitter Identification Number (ETIN)
• Electronic Filing Identification Number (EFIN)
• 5 digit PIN
Helpful Reminders
• 6 month extension period
• Profit made overseas is taxable
• Due date: 15th of the 3rd month after close of the company’s fiscal year
THANK YOU
Questions? Feedback?
Speak to us after class or Email us at: