Paper

Complete the federal income tax forms for a married couple (information provided in It is up to the student which forms are used from the following list (blank copies of all forms are available in your classroom in Week 5 under Final Paper).

•Form 1040

•Form 1040A

• Schedule 1 (Links to an external site.)Links to an external site. (Form 8849 Nontaxable Use of Fuels)

• Schedule 2 (Links to an external site.)Links to an external site. (Form 8849 Sales by Registered Ultimate Vendors)

•Schedule A (Form 1040) : Itemized Deductions

•Schedule B ( Form 1040A or 1040): Interest and Ordinary Dividends

•Schedule D (Form 1040): Capital Gains and Losses

The assignment can be completed without the TaxAct CD.

Upon completing the return, the student will submit a three to six page paper describing why they chose the forms and how the federal income tax return forms work. The student will submit both the tax return (all forms used) and the paper to their instructor.

Writing the Final Paper

The Final Paper:

1. Must be three to six double-spaced pages in length, and formatted according to APA style as outlined in the Ashford Writing Center.

2. Must include a title page with the following:

•Title of paper

•Student’s name

•Course name and number

•Instructor’s name

•Date submitted

3. Must begin with an introductory paragraph that has a succinct thesis statement.

4. Must address the topic of the paper with critical thought.

5. Must end with a conclusion that reaffirms your thesis.

6. Must use at least five scholarly sources, including a minimum of 2 from the Ashford Online Library.

7. Must document all sources in APA style, as outlined in the Ashford Writing Center.

8. Must include a separate reference page, formatted according to APA style as outlined in the Ashford Writing Center.

Appendix A

Please use this information for your Tax Return and Paper.

*All people, businesses, and information are fictional. Any relation to an actual person or business is accidental.

Kenneth Jones

SSN: 0XX-01-1XXX

Date of Birth (DOB): 05/27/1977

Gross Pay: $64,628

401(k) contributions: $5,250

Healthcare costs (payroll deductions): $2,438

Reported wages: $56,940

Social Security Wages: $62,190

Medicare Wages: $62,190

State Wages: $56,940

Taxes withheld:

Federal: $5,640

Social Security: $3,855.78

Medicare: $901.76

State: $723.56

SDI (mandatory disability insurance): $581.65

Employer: PointMark, INC

Address: 1111 One Park Place

City: One City

State: California

Zip code: 11111

Employer’s FED ID number: 33-01XXX11

Naomi Jones

SSN: 001-02-XXXX

DOB: 08/11/1980

Gross Pay: $58,192

401(k) contributions: $5,000

Healthcare costs (payroll deductions): $2,164

Reported wages: $51,028

Social Security Wages: $56,028

Medicare Wages: $56,028

State Wages: $51,028

Taxes withheld:

Federal: $4,704

Social Security: $3,473.74

Medicare: $812.41

State: $704.82

SDI (mandatory disability insurance): $523.73

Employer: CompanyOne

Address: 1111 Place Road

City: One City

State: California

Zip code: 11112

Employer’s FED ID number: 33-01XXX22

Dependent: Home address:

Derek Jones 123 Rolling Road

SSN: 001-XX-XX00 One City, CA 11111

DOB: 12/29/2013

Child Care Costs: $11,200

Child Care Provider: Kidland Daycare Center

Address: 121 Place Road

City: One City

State: California

Zip code: 11111

Identifying number: 33-XXXX011

Life Change Events

Home Sale:

Primary residence sale price $615,000

Cost basis (incurred three years prior) $400,000

Property Tax paid: $4,700

Mortgage Interest paid: $16,300