Lesson Plan
Course Title: Principles of Business, Marketing and Finance
Session Title: Prepare an individual income tax return
Performance Objective:
After completing this lesson, the student will understand how to prepare an individual income tax return and the various
deductions and exemptions associated with taxes.
Approximate Time:
When taught as written, this lesson should take 3-4 days to complete.
Specific Objectives:



Identify tax forms
Complete individual tax return
Determine exemptions and deductions on a tax return
TERMS








Filing Status – your tax-filing group based on your marital status
Exemption – an amount you may subtract from your income for each person who depends on your income to li
Gross Income – all taxable income you receive, including wages, salaries and tips
Adjusted Gross Income – gross income less adjustments
Itemized Deductions – expense listed on Schedule A that you can subtract from adjusted gross income to
determine taxable income
Standard Deduction – a stated amount you can subtract from adjusted gross income if you do not itemize
deduction
Taxable Income – the amount on which you will pay income tax
Tax Credit – an amount subtracted directly from the tax owed
Preparation
TEKS Correlations:
This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities may result in the
elimination of any or all of the TEKS listed.
130.112 (c)(7)(G)
…prepare an individual income tax return
Interdisciplinary Correlations:
English:
110.31 (b)(21)(B)
… organize information gathered from multiple sources to create a variety of graphics and forms (e.g., notes, learning
logs)…
110.31 (b)(22)(B)
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…evaluate the relevance of information to the topic and determine the reliability, validity, and accuracy of sources (inclu
Internet sources) by examining their authority and objectivity…
110.31 (b)(23)(C)
… use graphics and illustrations to help explain concepts where appropriate…
110.31 (b)(23)(D)
… use a variety of evaluative tools (e.g., self-made rubrics, peer reviews, teacher and expert evaluations) to examine th
quality of the research…
Occupational Correlation (O*Net - http://www.onetonline.org/)
Accountant 13-2011.01
Similar Job Titles: Accountant, Certified Public Accountant (CPA), Staff Accountant, Accounting Manager, Cost Accoun
General Accountant, Accounting Officer, Business Analyst, Accounting Supervisor, Financial Reporting Accountant
Tasks:

Prepare, examine, or analyze accounting records, financial statements, or other financial reports to assess accu
completeness, and conformance to reporting and procedural standards.

Report to management regarding the finances of establishment.

Establish tables of accounts and assign entries to proper accounts.

Develop, implement, modify, and document recordkeeping and accounting systems, making use of current com
technology.

Compute taxes owed and prepare tax returns, ensuring compliance with payment, reporting or other tax
requirements.

Maintain or examine the records of government agencies.

Advise clients in areas such as compensation, employee health care benefits, the design of accounting or data
processing systems, or long-range tax or estate plans.

Develop, maintain, and analyze budgets, preparing periodic reports that compare budgeted costs to actual costs

Provide internal and external auditing services for businesses or individuals.

Analyze business operations, trends, costs, revenues, financial commitments, and obligations, to project future
revenues and expenses or to provide advice.
(Soft) Skills:
Active listening, speaking, writing, critical thinking, judgment and decision making, time management, active learning
Teacher Preparation:
Teacher will review the terms in the outline, presentation slides and handouts to become familiar with lesson.
Teacher should locate and evaluate various resources and websites before the lesson.
Teacher will have assignments and website information ready to distribute to students
References:
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JA Finance Park Virtual. (n.d.). Retrieved June 6, 2012, from
http://jafinancepark.ja.org/Account/LogOn?ReturnUrl=%2fPublicUser%2fJumpPage
Ryan, J. S. (2010). Managing Your Personal Finances. Mason: South-Western, Cengage Learning.
Tax Form 1040EZ. (2012). Retrieved June 6, 2012, from Internal Revenue Service: http://www.irs.gov/pub/irspdf/f1040ez.pdf
Wage and Tax Statement. (2012). Retrieved June 6, 2012, from Internal Revenue Service: http://www.irs.gov/pub/irspdf/fw2.pdf
Instructional Aids:
1. Display for presentation, websites for assignments and class discussion
Materials Needed:
1. Assignments and website information ready to distribute to students
2. Copy of tax related forms
3. Copy of instructions and rubric for each student
Equipment Needed:
1. Computer with presentation and Internet access
2. Projector to review presentation and Internet sites
3. Computers for students to conduct research and collect data for projects
Learner Preparation:
Upon entering the work-force, every individual accepts the responsibility of filing an annual federal tax return. Taxes are
withheld from every pay check based on selections made when completing the initial paperwork for your new job. A Wform is necessary to determine an individual’s percentage of withholdings by an employer. Therefore, understanding th
process of filing an individual tax return will assist in completing these forms correctly.
Ask students to determine the gross income for an individual working 40 hours per week at minimum wage. ($7.25 x 40
hours = $290.00). Inquire if the individual will receive a check from the company they are working for in that amount? T
explain to role of taxes withheld from a paycheck by an employer and the actual net income received by the employee
work completed.
Introduction
Introduction (LSI Quadrant I):
SHOW: Show students a W-4 and W-2 form.
ASK: Ask students what is significant about these two forms.
SAY: Explain how the W-4 is completed upon beginning a job to determine the amount of taxes withheld based on
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exemptions. Then explain how a W-2 is provided by January 31 notating the prior year’s income received and taxes
withheld.
ASK: Ask students if they have ever completed a W-4 or received a W-2 from an employer.
SAY: Explain how it is important to use the W-2 to file an individual income tax return by April 15 for the previous year’s
income.
Outline
Outline (LSI Quadrant II):
Instructors can use the PowerPoint presentation, slides, handouts, and note pages in conjunction with the following out
MI
Outline
I.
Discovery
A. Ask students about W-2 and W-4 forms
B. Inquire if students have completed a W-4
or received a W-2
C. Review a Form 1040 to file taxes
Notes to Instructor
Share personal experiences of working at a f
job and filing taxes.
http://www.irs.gov/pub/irs-pdf/f1040ez.pdf
II. Introduction
A. Why do individuals file tax returns
1. Discuss legal requirements
2. Review tax terminology
3. Evaluate types of exemptions
Use the terms listed to review definitions and
visit www.irs.gov to become familiar with the
Internal Revenue Service
III. Guided Practice
A. Direct students to JA Finance Park to
simulate financial decisions
B. Discuss the experience as a whole group
to identify new knowledge obtained
Introduce students to
IV. Independent Practice
A. Individual Tax Return – complete a
1040EZ tax form to file
Obtain a sample W-2 at
http://www.irs.gov/pub/irs-pdf/fw2.pdf
and fill in information for the student to comp
the 1040EZ
V. Extension
A. What about the IRS? – review the IRS site
and create a presentation about the
organization
Use the enrichment activity to expand studen
learning and evaluation of information
VI. Summary
A. Review lesson objectives
B. Check for understanding
Conduct a class discussion to review informa
obtained from the lesson and revisit areas
lacking comprehension
http://jafinancepark.ja.org/PublicUser/JumpP
to practice making financial decisions and fili
taxes.
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Verbal
Linguistic
Logical
Mathematical
Visual
Spatial
Musical
Rhythmic
Bodily
Kinesthetic
Intrapersonal
Interpersonal
Naturalist
Existentialist
Application
Guided Practice (LSI Quadrant III):
Introduce students to http://jafinancepark.ja.org/PublicUser/JumpPage to practice making financial decisions and filing
taxes. They will register information about themselves and then use the free online software to make personal and finan
decisions affecting their income and lifestyle. They will be responsible for tax information and completing W-4 forms.
Independent Practice (LSI Quadrant III):
This project will be evaluated using the assigned rubric for “Prepare an Individual Tax Return”
Summary
Review (LSI Quadrants I):
Why is it important to complete the Form W-4 correctly upon starting a new job?
Who do you send an individual tax return to?
What is the last date you can file an individual tax return without penalty?
When should employers provide the W-2 to employees?
What are some examples of exemptions you may have on a tax return?
Evaluation
Informal Assessment (LSI Quadrant III):
Instructor should observe the work ethic of individuals involved in class discussions and the independent practice activi
Formal Assessment (LSI Quadrant III, IV):
Students will be evaluated on their “Prepare an Individual Tax Return” by using the assigned rubric.
Extension
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Extension/Enrichment (LSI Quadrant IV):
What about the IRS?
Student Directions
Direct students to research information about the IRS by using the organization’s website or other sites. They should id
the organizations role in the government and how they manage taxes throughout the United States. The students may
locate any relevant information to include in a presentation to the class. Presentation software should be used to create
visual summarizing the information located and include speaker notes for instructor evaluation.
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Principles of Business, Marketing, and Finance
Lesson __ Student Directions
Independent Practice (LSI Quadrant III):
Prepare an Individual Tax Return
January 31 has arrived and it is time to begin completing the necessary paperwork to file a tax return. Using
the W-2 provided, complete the following steps to file taxes by the federal April 15 deadline.
1.
2.
3.
4.
5.
Fill-in your personal information on the Form 1040 EZ.
Use the financial information located on the provided W-2 to complete the required areas on the form.
Calculate the tax return based on the formulas provided throughout the 1040 EZ.
Double check all calculations and information to ensure accuracy for the IRS.
Turn in completed Form 1040 EZ and completed W-2 with your information added.
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Independent Practice (LSI Quadrant III)
Prepare an Individual Tax Return
Rubric
25
20
CATEGORY
15
10-
Completeness
All sections are
All sections are
All sections are
complete with
complete with
complete
accurate information accurate information
and calculated
correctly
Sections are missing
throughout the form.
Accuracy
Calculations are
accurate and reflect
exact tax return
amount
Calculations are
accurate and reflect
a tax return amount
Calculations are
correct
Calculations are not
accurate and do not
reflect the tax return
amount
Neatness
Information is
entered in the
correct location and
written precisely
Information is
entered in the
correct location
Information is
entered on the form
Information is written
randomly throughout
form and is difficult to
determine
Organization
Contents are present Contents are present Contents are present Contents are missing
and well organized
and organized
but lack organization and/or lack
in a professional
organization
manner
Total Points Earned _______
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