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:

Nyarayi.Chibanda@mail.wlc.edu or Jennifer.Piepenbrink@mail.wlc.edu