Prepare 2012 Forms 1040 and 8949

Prepare 2012 Forms 1040 and 8949 - Prepare 2012 Schedules A, B, and D - Prepare 2012 “Social Security Benefits Worksheet” o Located in 2012 Form 1040 instructions Due Date: Beginning of class – October 29th Luke and XXXXX XXXXX are married and their address is 111 S. Harrison Street, Omaha, NE 68166. Luke is employed as a dentist and Lisa is retired but runs a small business out of their home. The Jones’ personal information is as follows: Name SSN Birthday Luke S. XXX-XX-XXXX 12-10-45 Lisa K. XXX-XX-XXXX 05-04-47 Luke and Lisa had the following income and expenses during 2012: Income: Luke Salary $118,000 Gift from Luke’s Mother $10,000 Interest Income from USA Bank on savings account $1,000 Interest Income from city of Omaha bond $8,000 Dividend Income from ABC Corporation (not qualified) $6,000 Business Income from Schedule C $5,000 Life insurance proceeds (Lisa’s father past away) $100,000 Lisa’s inheritance from father’s estate $50,000 Lisa’s Social Security Benefits (from Box 5 on form SSA-1099) $18,000 Proceeds from Stock Sales* $18,250 Expenses: Home mortgage interest $3,600 Charitable contributions $20,000 Gave equal cash gifts to each of their 3 grandchildren $39,000 State Income Tax Withholding $7,500 Federal Income Tax Withholding $12,000 Qualified Medical Expenses $15,000 Interest paid on credit cards $1,200 Interest on car loan $800 Property taxes on automobiles $1,000 Contributions to traditional IRAs $10,000 Real estate taxes on home $6,000 Tax return preparation fee $4,000 Unreimbursed employee business expenses $2,000 *The proceeds from stock sales came from two separate transactions during 2012: - On April 12th, Luke sold 250 shares of XYZ Corporation stock for $25/share. Luke had originally bought those shares on March 5, 2003 for $30/share. - On July 23rd, Luke sold 300 shares of MNO Corporation Stock for $40/share. Luke has originally bought those shares on January 11, 2012 for $25/share. You work as a tax professional at UNO, LLP. The Jones’ have hired you to prepare their 2012 tax return. The firm’s address is 1040 South 102nd Street, Omaha, NE 68166 and their EIN is 14-7598461. Your PTIN is P11223355. Hints:  For Form 8949, check box A and there are no adjustments to gains or losses.  Neither Luke nor Lisa participate in employer sponsored retirement plans.  Disregard any applicable credits.  You do not have to fill out Schedule C, Form 2106 or any other form that is not listed as required for the project.