[Objective 1]
Describe the importance of taxes for personal financial planning. Tax planning can influence spending, saving, borrowing, and investing decisions. A knowledge of tax laws and maintenance of accurate tax records allow you to take advantage of appropriate tax benefits. An awareness of income taxes, sales taxes, excise taxes, property taxes, estate taxes, inheritance taxes, gift taxes, and Social Security taxes is vital for successful financial planning.

[Objective 2]
Calculate taxable income and the amount owed for federal income tax. Taxable income is determined by subtracting adjustments to income, deductions, and allowances for exemptions from gross income. Your total tax liability is based on the published tax tables or tax schedules, less any tax credits.

[Objective 3]
Prepare a federal income tax return. The major sections of Form 1040 require you to calculate (1) your filing status, (2) exemptions, (3) income from all sources, (4) adjustments to your income, (5) standard deduction or itemized deductions, (6) tax credits for which you qualify, (7) other taxes you owe, (8) amounts you have withheld or paid in advance, and (9) your refund or the additional amount you owe.

[Objective 4]
Identify tax assistance sources. The main sources of tax assistance are IRS services and publications, other publications, the Internet, computer software, and professional tax preparers such as commercial tax services, enrolled agents, accountants, and attorneys.

[Objective 5]
Select appropriate tax strategies for different financial and personal situations. You may reduce your tax burden by carefully planning financial decisions related to consumer purchasing, the use of debt, investments, and retirement planning.