We are about one month away from Tax Day, one of the most important days of the year. This means it is just about crunch time. For the most part, I have been working on preparing Individual returns. I am becoming really familiar with the different parts of an Individual tax return including all of the different Schedules. For example, Schedule A, Schedule B, Schedule C and Schedule D, just to name a few.
While these Schedules are very important for returns, I use their names as simple signals for how an intern can stay focused.
In regards to the return, Schedule A is used for Itemized Deductions. However, I think of it as Schedule A for ABSORB. It is important for an intern to absorb any and all information that we learn. We will always use it again, so it’s important to remember things so you don’t have to ask twice.
Schedule B is used for Interest and Ordinary Dividends. I like to think of it as Schedule B for BACKWARDS. Sometimes, it makes it easier for an intern to look at prior year returns to make sure we are preparing the current year return correctly. We can work backwards to find the current year results.
Sole proprietors use a Schedule C. To me, Schedule C means CAREFUL. It is imperative to be careful when preparing returns. We are working with client information that needs to be protected.
Schedule D is prepared for Capital Gains and Losses. I think of Schedule D for DETAILS. As an accounting intern and student, we are always told to pay attention to details. Making a simple error could cause major problems. We always have to be paying close attention to our work.