Accounting - California 2014 Form 540
012ent
homework_chang.zipHomework_chang/Chang - Form 1040 - Calendar 2014.pdf
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rm 1040 Department of the Treasury—Internal Revenue Service (99)U.S. Individual Income Tax Return 2014 OMB No. 1545-0074 IRS Use Only—Do not write or staple in this space. For the year Jan. 1–Dec. 31, 2014, or other tax year beginning , 2014, ending , 20 See separate instructions. Your first name and initial Last name Your social security number
If a joint return, spouse’s first name and initial Last name Spouse’s social security number
▲ Make sure the SSN(s) above and on line 6c are correct.
Home address (number and street). If you have a P.O. box, see instructions. Apt. no.
City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions).
Foreign country name Foreign province/state/county Foreign postal code
Presidential Election Campaign
Check here if you, or your spouse if filing jointly, want $3 to go to this fund. Checking a box below will not change your tax or refund. You Spouse
Filing Status
Check only one box.
1 Single
2 Married filing jointly (even if only one had income)
3 Married filing separately. Enter spouse’s SSN above and full name here. ▶
4 Head of household (with qualifying person). (See instructions.) If the qualifying person is a child but not your dependent, enter this
child’s name here. ▶
5 Qualifying widow(er) with dependent child
Exemptions 6a Yourself. If someone can claim you as a dependent, do not check box 6a . . . . . b Spouse . . . . . . . . . . . . . . . . . . . . . . . .
} c Dependents:
(1) First name Last name
(2) Dependent’s social security number
(3) Dependent’s relationship to you
(4) ✓ if child under age 17 qualifying for child tax credit
(see instructions)
If more than four dependents, see instructions and check here ▶
d Total number of exemptions claimed . . . . . . . . . . . . . . . . .
Boxes checked on 6a and 6b No. of children on 6c who: • lived with you • did not live with you due to divorce or separation (see instructions)
Dependents on 6c not entered above
Add numbers on lines above ▶
Income
Attach Form(s) W-2 here. Also attach Forms W-2G and 1099-R if tax was withheld.
If you did not get a W-2, see instructions.
7 Wages, salaries, tips, etc. Attach Form(s) W-2 . . . . . . . . . . . . 7
8a Taxable interest. Attach Schedule B if required . . . . . . . . . . . . 8a
b Tax-exempt interest. Do not include on line 8a . . . 8b
9 a Ordinary dividends. Attach Schedule B if required . . . . . . . . . . . 9a
b Qualified dividends . . . . . . . . . . . 9b
10 Taxable refunds, credits, or offsets of state and local income taxes . . . . . . 10
11 Alimony received . . . . . . . . . . . . . . . . . . . . . 11
12 Business income or (loss). Attach Schedule C or C-EZ . . . . . . . . . . 12
13 Capital gain or (loss). Attach Schedule D if required. If not required, check here ▶ 13
14 Other gains or (losses). Attach Form 4797 . . . . . . . . . . . . . . 14
15 a IRA distributions . 15a b Taxable amount . . . 15b
16 a Pensions and annuities 16a b Taxable amount . . . 16b
17 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E 17
18 Farm income or (loss). Attach Schedule F . . . . . . . . . . . . . . 18
19 Unemployment compensation . . . . . . . . . . . . . . . . . 19
20 a Social security benefits 20a b Taxable amount . . . 20b
21 Other income. List type and amount 21 22 Combine the amounts in the far right column for lines 7 through 21. This is your total income ▶ 22
Adjusted Gross Income
23 Educator expenses . . . . . . . . . . . 23
24 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 or 2106-EZ 24
25 Health savings account deduction. Attach Form 8889 . 25
26 Moving expenses. Attach Form 3903 . . . . . . 26
27 Deductible part of self-employment tax. Attach Schedule SE . 27
28 Self-employed SEP, SIMPLE, and qualified plans . . 28
29 Self-employed health insurance deduction . . . . 29
30 Penalty on early withdrawal of savings . . . . . . 30
31 a Alimony paid b Recipient’s SSN ▶ 31a
32 IRA deduction . . . . . . . . . . . . . 32
33 Student loan interest deduction . . . . . . . . 33
34 Tuition and fees. Attach Form 8917 . . . . . . . 34
35 Domestic production activities deduction. Attach Form 8903 35
36 Add lines 23 through 35 . . . . . . . . . . . . . . . . . . . 36 37 Subtract line 36 from line 22. This is your adjusted gross income . . . . . ▶ 37
For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B Form 1040 (2014)
Form 1040 (2014) Page 2
Tax and Credits
38 Amount from line 37 (adjusted gross income) . . . . . . . . . . . . . . 38
39a Check if:
{ You were born before January 2, 1950, Blind. Spouse was born before January 2, 1950, Blind.
} Total boxes checked ▶ 39a
b If your spouse itemizes on a separate return or you were a dual-status alien, check here ▶ 39b Standard Deduction for— • People who check any box on line 39a or 39b or who can be claimed as a dependent, see instructions. • All others: Single or Married filing separately, $6,200 Married filing jointly or Qualifying widow(er), $12,400 Head of household, $9,100
40 Itemized deductions (from Schedule A) or your standard deduction (see left margin) . . 40
41 Subtract line 40 from line 38 . . . . . . . . . . . . . . . . . . . 41
42 Exemptions. If line 38 is $152,525 or less, multiply $3,950 by the number on line 6d. Otherwise, see instructions 42
43 Taxable income. Subtract line 42 from line 41. If line 42 is more than line 41, enter -0- . . 43
44 Tax (see instructions). Check if any from: a Form(s) 8814 b Form 4972 c 44
45 Alternative minimum tax (see instructions). Attach Form 6251 . . . . . . . . . 45
46 Excess advance premium tax credit repayment. Attach Form 8962 . . . . . . . . 46
47 Add lines 44, 45, and 46 . . . . . . . . . . . . . . . . . . . ▶ 47
48 Foreign tax credit. Attach Form 1116 if required . . . . 48
49 Credit for child and dependent care expenses. Attach Form 2441 49
50 Education credits from Form 8863, line 19 . . . . . 50
51 Retirement savings contributions credit. Attach Form 8880 51
52 Child tax credit. Attach Schedule 8812, if required . . . 52
53 Residential energy credits. Attach Form 5695 . . . . 53
54 Other credits from Form: a 3800 b 8801 c 54
55 Add lines 48 through 54. These are your total credits . . . . . . . . . . . . 55
56 Subtract line 55 from line 47. If line 55 is more than line 47, enter -0- . . . . . . ▶ 56
Other Taxes
57 Self-employment tax. Attach Schedule SE . . . . . . . . . . . . . . . 57
58 Unreported social security and Medicare tax from Form: a 4137 b 8919 . . 58
59 Additional tax on IRAs, other qualified retirement plans, etc. Attach Form 5329 if required . . 59
60 a Household employment taxes from Schedule H . . . . . . . . . . . . . . 60a
b First-time homebuyer credit repayment. Attach Form 5405 if required . . . . . . . . 60b
61 Health care: individual responsibility (see instructions) Full-year coverage . . . . . 61
62 Taxes from: a Form 8959 b Form 8960 c Instructions; enter code(s) 62
63 Add lines 56 through 62. This is your total tax . . . . . . . . . . . . . ▶ 63
Payments 64 Federal income tax withheld from Forms W-2 and 1099 . . 64 65 2014 estimated tax payments and amount applied from 2013 return 65
If you have a qualifying child, attach Schedule EIC.
66a Earned income credit (EIC) . . . . . . . . . . 66a
b Nontaxable combat pay election 66b
67 Additional child tax credit. Attach Schedule 8812 . . . . . 67
68 American opportunity credit from Form 8863, line 8 . . . 68
69 Net premium tax credit. Attach Form 8962 . . . . . . 69
70 Amount paid with request for extension to file . . . . . 70
71 Excess social security and tier 1 RRTA tax withheld . . . . 71 72 Credit for federal tax on fuels. Attach Form 4136 . . . . 72
73 Credits from Form: a 2439 b Reserved c Reserved d 73
74 Add lines 64, 65, 66a, and 67 through 73. These are your total payments . . . . . ▶ 74
Refund
Direct deposit? See instructions.
75 If line 74 is more than line 63, subtract line 63 from line 74. This is the amount you overpaid 75
76a Amount of line 75 you want refunded to you. If Form 8888 is attached, check here . ▶ 76a ▶
▶
b Routing number ▶ c Type: Checking Savings
d Account number
77 Amount of line 75 you want applied to your 2015 estimated tax ▶ 77 Amount You Owe
78 Amount you owe. Subtract line 74 from line 63. For details on how to pay, see instructions ▶ 78 79 Estimated tax penalty (see instructions) . . . . . . . 79
Third Party Designee
Do you want to allow another person to discuss this return with the IRS (see instructions)? Yes. Complete below. No Designee’s name ▶
Phone no. ▶
Personal identification number (PIN) ▶
Sign Here Joint return? See instructions. Keep a copy for your records.
Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
Your signature Date Your occupation Daytime phone number
Spouse’s signature. If a joint return, both must sign. Date
▲
Spouse’s occupation If the IRS sent you an Identity Protection PIN, enter it here (see inst.)
Paid Preparer Use Only
Print/Type preparer’s name Preparer’s signature Date Check if self-employed
PTIN
Firm’s name ▶
Firm’s address ▶
Firm's EIN ▶
Phone no.
www.irs.gov/form1040 Form 1040 (2014)
Version A, Cycle 11
Internal Use Only
DRAFT AS OF
December 19, 2014
Version A, Cycle 11
Internal Use Only
DRAFT AS OF
December 19, 2014
2014 Form 1040
SE:W:CAR:MP
U.S. Individual Income Tax Return
Form
1040
Department of the Treasury—Internal Revenue Service
(99)
U.S. Individual Income Tax Return
2014
2014. Catalog Number 11320B.
OMB No. 1545-0074
O M B Number 1545-0074. For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions.
IRS Use Only—Do not write or staple in this space.
See separate instructions.
▲
Make sure the SSN(s) above and on line 6c are correct.
Presidential Election Campaign
Check here if you, or your spouse if filing jointly, want $3 to go to this fund. Checking a box below will not change your tax or refund.
Filing Status
Check only one box.
1
Single
2
Married filing jointly (even if only one had income)
3
Married filing separately. Enter spouse’s SSN above and full name here. ▶
4
Head of household (with qualifying person). (See instructions.) If the qualifying person is a child but not your dependent, enter this child’s name here. ▶
5
Qualifying widow(er) with dependent child
Exemptions
6
a
Yourself. If someone can claim you as a dependent, do not check box 6a
b
Spouse
}
c
Dependents:
(1) First name Last name
(2) Dependent’s
social security number
(3) Dependent’s relationship to you
(4) ✓ if child under age 17 qualifying for child tax credit
(see instructions)
(4) Check if child under age 17 qualifying for child tax credit (see instructions).
If more than four dependents, see instructions and check here ▶
d
Total number of exemptions claimed
Boxes checked on 6a and 6b
No. of children on 6c who:
• lived with you
• did not live with you due to divorce or separation
(see instructions)
Dependents on 6c not entered above
Add numbers on lines above ▶
Income
Attach Form(s) W-2 here. Also attach Forms W-2G and
1099-R if tax was withheld.
If you did not
get a W-2,
see instructions.
7
Wages, salaries, tips, etc. Attach Form(s) W-2
7
8
a
Taxable interest. Attach Schedule B if required
8a
b
Tax-exempt interest. Do not include on line 8a
8b
9
a
Ordinary dividends. Attach Schedule B if required
9a
b
Qualified dividends
9b
10
Taxable refunds, credits, or offsets of state and local income taxes
10
11
Alimony received
11
12
Business income or (loss). Attach Schedule C or C-EZ
12
13
Capital gain or (loss). Attach Schedule D if required. If not required, check here ▶
13
14
Other gains or (losses). Attach Form 4797
14
15
a
IRA distributions
15a
b Taxable amount
15b
16
a
Pensions and annuities
16a
b Taxable amount
16b
17
Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E
17
18
Farm income or (loss). Attach Schedule F
18
19
Unemployment compensation
19
20
a
Social security benefits
20a
b Taxable amount
20b
21
Other income. List type and amount
21
22
Combine the amounts in the far right column for lines 7 through 21. This is your total income ▶
22
Adjusted Gross Income
23
Educator expenses
23
24
Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 or 2106-EZ
24
25
Health savings account deduction. Attach Form 8889
25
26
Moving expenses. Attach Form 3903
26
27
Deductible part of self-employment tax. Attach Schedule SE
27
28
Self-employed SEP, SIMPLE, and qualified plans
28
29
Self-employed health insurance deduction
29
30
Penalty on early withdrawal of savings
30
31
a
Alimony paid
b Recipient’s SSN ▶
31a
32
IRA deduction
32
33
Student loan interest deduction
33
34
Tuition and fees. Attach Form 8917
34
35
Domestic production activities deduction. Attach Form 8903
35
36
Add lines 23 through 35
36
37
Subtract line 36 from line 22. This is your adjusted gross income ▶
37
For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions.
Cat. No. 11320B
Form 1040 (2014)
Form 1040 (2014)
Page 2
Tax and Credits
38
Amount from line 37 (adjusted gross income)
38
39
a
Check if:
{
}
Total boxes checked ▶
39a
b
If your spouse itemizes on a separate return or you were a dual-status alien, check here ▶
Standard Deduction for—
• People who check any box on line 39a or 39b or who can be claimed as a dependent, see instructions.
• All others:
Single or Married filing separately, $6,200
Married filing jointly or Qualifying widow(er), $12,400
Head of household, $9,100
40
Itemized deductions (from Schedule A) or your standard deduction (see left margin)
40
41
Subtract line 40 from line 38
41
42
Exemptions. If line 38 is $152,525 or less, multiply $3,950 by the number on line 6d. Otherwise, see instructions
42
43
Taxable income. Subtract line 42 from line 41. If line 42 is more than line 41, enter -0-
43
44
Tax (see instructions). Check if any from:
a
b
c
44
45
Alternative minimum tax (see instructions). Attach Form 6251
45
46
Excess advance premium tax credit repayment. Attach Form 8962
46
47
Add lines 44, 45, and 46 ▶
47
48
Foreign tax credit. Attach Form 1116 if required
48
49
Credit for child and dependent care expenses. Attach Form 2441
49
50
Education credits from Form 8863, line 19
50
51
Retirement savings contributions credit. Attach Form 8880
51
52
Child tax credit. Attach Schedule 8812, if required
52
53
Residential energy credits. Attach Form 5695
53
54
Other credits from Form:
a
b
c
54
55
Add lines 48 through 54. These are your total credits
55
56
Subtract line 55 from line 47. If line 55 is more than line 47, enter -0- ▶
56
Other Taxes
57
Self-employment tax. Attach Schedule SE
57
58
Unreported social security and Medicare tax from Form:
a
b
58
59
Additional tax on IRAs, other qualified retirement plans, etc. Attach Form 5329 if required
59
60
a
Household employment taxes from Schedule H
60a
b
First-time homebuyer credit repayment. Attach Form 5405 if required
60b
61
Health care: individual responsibility (see instructions)
61
62
Taxes from:
a
b
c
enter code(s)
62
63
Add lines 56 through 62. This is your total tax ▶
63
Payments
64
Federal income tax withheld from Forms W-2 and 1099
64
65
2014 estimated tax payments and amount applied from 2013 return
65
If you have a qualifying child, attach Schedule EIC.
66
a
Earned income credit (EIC)
66a
b
Nontaxable combat pay election
66b
67
Additional child tax credit. Attach Schedule 8812 .
67
68
American opportunity credit from Form 8863, line 8
68
69
Net premium tax credit. Attach Form 8962
69
70
Amount paid with request for extension to file
70
71
Excess social security and tier 1 RRTA tax withheld
71
72
Credit for federal tax on fuels. Attach Form 4136
72
73
Credits from Form:
a
b
c
d
73
74
Add lines 64, 65, 66a, and 67 through 73. These are your total payments ▶
74
Refund
Direct deposit? See instructions.
75
If line 74 is more than line 63, subtract line 63 from line 74. This is the amount you overpaid
75
76
a
Amount of line 75 you want refunded to you. If Form 8888 is attached, check here ▶
76a
▶
▶
b
Routing number
▶ c Type:
d
Account number
77
Amount of line 75 you want applied to your 2015 estimated tax ▶
77
Amount You Owe
78
Amount you owe. Subtract line 74 from line 63. For details on how to pay, see instructions ▶
78
79
Estimated tax penalty (see instructions)
79
Third Party Designee
Do you want to allow another person to discuss this return with the IRS (see instructions)?
Designee’sname ▶
Phoneno. ▶
Personal identificationnumber (PIN) ▶
Sign Here
Joint return? See instructions. Keep a copy for your records.
Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
Your signature
Date
Spouse’s signature. If a joint return, both must sign.
Date
▲
If the IRS sent you an Identity Protection PIN, enter it
here (see inst.)
Paid Preparer Use Only
Preparer’s signature
Date
Check if
self-employed
www.irs.gov/form1040
Form 1040 (2014)
- f1_01:
- f1_02:
- f1_03:
- f1_04: PATRICK
- f1_05: CHANG
- f1_06: 123456789
- f1_07: ROSE
- f1_08: CHANG
- f1_09: 234567890
- f1-10: 1001 GREENWOOD AVE.
- f1-11:
- f1-12: SAN JOSE, CA 95113
- f1_13:
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- f1_45: 750
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- f1_47:
- f1_48:
- f1_49:
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- c1_11:
- f1-_51: 58,859
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- f1_71: 19,550
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- f1_73:
- f1_74:
- f1_75:
- f1_76: 238,664
- f1_77: ---
- f1_78:
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- f1_80:
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- f2_01: 238,664
- f2_02: ---
- c2_01:
- c2_02:
- c2_03:
- c2_04:
- f2-03:
- c2_05:
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- c2_23:
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Homework_chang/Chang - Schedule A - Calendar 2014.pdf
SCHEDULE A (Form 1040)
Department of the Treasury Internal Revenue Service (99)
Itemized Deductions ▶ Information about Schedule A and its separate instructions is at www.irs.gov/schedulea.
▶ Attach to Form 1040.
OMB No. 1545-0074
2014 Attachment Sequence No. 07
Name(s) shown on Form 1040 Your social security number
Medical and Dental Expenses
Caution. Do not include expenses reimbursed or paid by others. 1 Medical and dental expenses (see instructions) . . . . . 1 2 Enter amount from Form 1040, line 38 2 3 Multiply line 2 by 10% (.10). But if either you or your spouse was
born before January 2, 1950, multiply line 2 by 7.5% (.075) instead 3 4 Subtract line 3 from line 1. If line 3 is more than line 1, enter -0- . . . . . . . . 4
Taxes You Paid
5 State and local (check only one box): a Income taxes, or b General sales taxes } . . . . . . . . . . . 5
6 Real estate taxes (see instructions) . . . . . . . . . 6 7 Personal property taxes . . . . . . . . . . . . . 7 8 Other taxes. List type and amount ▶
8 9 Add lines 5 through 8 . . . . . . . . . . . . . . . . . . . . . . 9
Interest You Paid
Note. Your mortgage interest deduction may be limited (see instructions).
10 Home mortgage interest and points reported to you on Form 1098 10 11
Home mortgage interest not reported to you on Form 1098. If paid to the person from whom you bought the home, see instructions and show that person’s name, identifying no., and address ▶
11 12
Points not reported to you on Form 1098. See instructions for special rules . . . . . . . . . . . . . . . . . 12
13 Mortgage insurance premiums (see instructions) . . . . . 13 14 Investment interest. Attach Form 4952 if required. (See instructions.) 14 15 Add lines 10 through 14 . . . . . . . . . . . . . . . . . . . . . 15
Gifts to Charity If you made a gift and got a benefit for it, see instructions.
16
Gifts by cash or check. If you made any gift of $250 or more, see instructions . . . . . . . . . . . . . . . . 16
17
Other than by cash or check. If any gift of $250 or more, see instructions. You must attach Form 8283 if over $500 . . . 17
18 Carryover from prior year . . . . . . . . . . . . 18 19 Add lines 16 through 18 . . . . . . . . . . . . . . . . . . . . . 19
Casualty and Theft Losses 20 Casualty or theft loss(es). Attach Form 4684. (See instructions.) . . . . . . . . 20 Job Expenses and Certain Miscellaneous Deductions
21
Unreimbursed employee expenses—job travel, union dues, job education, etc. Attach Form 2106 or 2106-EZ if required. (See instructions.) ▶ 21
22 Tax preparation fees . . . . . . . . . . . . . 22 23
Other expenses—investment, safe deposit box, etc. List type and amount ▶
23 24 Add lines 21 through 23 . . . . . . . . . . . . 24 25 Enter amount from Form 1040, line 38 25 26 Multiply line 25 by 2% (.02) . . . . . . . . . . . 26 27 Subtract line 26 from line 24. If line 26 is more than line 24, enter -0- . . . . . . 27
Other Miscellaneous Deductions
28 Other—from list in instructions. List type and amount ▶
28 Total Itemized Deductions
29
Is Form 1040, line 38, over $152,525?
29 No. Your deduction is not limited. Add the amounts in the far right column for lines 4 through 28. Also, enter this amount on Form 1040, line 40. } . .Yes. Your deduction may be limited. See the Itemized Deductions Worksheet in the instructions to figure the amount to enter.
30
If you elect to itemize deductions even though they are less than your standard deduction, check here . . . . . . . . . . . . . . . . . . . ▶
For Paperwork Reduction Act Notice, see Form 1040 instructions. Cat. No. 17145C Schedule A (Form 1040) 2014
Version A, Cycle 4
IINTERNAL USE ONLY
DRAFT AS OF
December 11, 2014
2014 Form 1040 (Schedule A)
SE:W:CAR:MP
Itemized Deductions
SCHEDULE A (Form 1040)
Department of the Treasury Internal Revenue Service (99)
Itemized Deductions
▶ Information about Schedule A and its separate instructions is at www.irs.gov/schedulea.
▶ Attach to Form 1040.
OMB No. 1545-0074
2014
2014. Catalog Number 17145C.
Attachment
Sequence No. 07
Attachment Sequence Number 07. For Paperwork Reduction Act Notice, see Form 1040 instructions.
Medical and Dental Expenses
Caution. Do not include expenses reimbursed or paid by others.
1
Medical and dental expenses (see instructions)
1
2
Enter amount from Form 1040, line 38
2
3
Multiply line 2 by 10% (.10). But if either you or your spouse was born before January 2, 1950, multiply line 2 by 7.5% (.075) instead
3
4
Subtract line 3 from line 1. If line 3 is more than line 1, enter -0-
4
Taxes YouPaid
5
State and local (check only one box):
a
b
}
5
6
Real estate taxes (see instructions)
6
7
Personal property taxes
7
8
8
9
Add lines 5 through 8
9
InterestYou Paid
Note.Your mortgage interest deduction may be limited (see instructions).
10
Home mortgage interest and points reported to you on Form 1098
10
11
Home mortgage interest not reported to you on Form 1098. If paid to the person from whom you bought the home, see instructions and show that person’s name, identifying no., and address ▶
11
12
Points not reported to you on Form 1098. See instructions for special rules
12
13
Mortgage insurance premiums (see instructions)
13
14
Investment interest. Attach Form 4952 if required. (See instructions.)
14
15
Add lines 10 through 14
15
Gifts toCharity
If you made agift and got abenefit for it,see instructions.
16
Gifts by cash or check. If you made any gift of $250 or more, see instructions
16
17
Other than by cash or check. If any gift of $250 or more, see instructions. You must attach Form 8283 if over $500
17
18
Carryover from prior year
18
19
Add lines 16 through 18
19
Casualty and Theft Losses
20
Casualty or theft loss(es). Attach Form 4684. (See instructions.)
20
Job Expensesand Certain Miscellaneous Deductions
21
Unreimbursed employee expenses—job travel, union dues, job education, etc. Attach Form 2106 or 2106-EZ if required. (See instructions.) ▶
21
22
Tax preparation fees
22
23
Other expenses—investment, safe deposit box, etc. List type and amount ▶
23
24
Add lines 21 through 23
24
25
Enter amount from Form 1040, line 38
25
26
Multiply line 25 by 2% (.02)
26
27
Subtract line 26 from line 24. If line 26 is more than line 24, enter -0-
27
Other Miscellaneous Deductions
28
28
Total Itemized Deductions
29
Is Form 1040, line 38, over $152,525?
29
No. Your deduction is not limited. Add the amounts in the far right column
for lines 4 through 28. Also, enter this amount on Form 1040, line 40.
}
Yes. Your deduction may be limited. See the Itemized Deductions
Worksheet in the instructions to figure the amount to enter.
30
If you elect to itemize deductions even though they are less than your standard deduction, check here ▶
For Paperwork Reduction Act Notice, see Form 1040 instructions.
Cat. No. 17145C
Schedule A (Form 1040) 2014
PATRICK AND ROSE CHANG
123-45-6789
- f1_1:
- f1_2:
- f1_3:
- f1_4:
- f1_5:
- f1_6:
- f1_7:
- f1_8:
- f1_9: 0
- f1_10: ---
- c1_1: 1
- f1_11: 16,000
- f1_12: ---
- f1_13: 3,800
- f1_14: ---
- f1_15: 140
- f1_16: ---
- f1_17:
- f1_18:
- f1_19:
- f1_20:
- f1_21: 19,940
- f1_22: ---
- f1_23:
- f1_24:
- f1_25:
- f1_26:
- f1_27:
- f1_28:
- f1_29:
- f1_30:
- f1_31:
- f1_32:
- f1_33:
- f1_34:
- f1_35: 0
- f1_36: ---
- f1_37: 7,000
- f1_38: ---
- f1_39:
- f1_40:
- f1_41:
- f1_42:
- f1_43: 7,000
- f1_44: ---
- f1_45: 0
- f1_46: ---
- f1_47:
- f1_48:
- f1_49:
- f1_50:
- f1_51:
- f1_52:
- f1_53:
- f1_54:
- f1_55:
- f1_56:
- f1_57:
- f1_58:
- f1_59:
- f1_60:
- f1_61:
- f1_62: 0
- f1_63: ---
- f1_64:
- f1_65:
- f1_66:
- f1_67: 0
- f1_68: ---
- f1_69: 26,940
- f1_70: ---
- c1_2:
- c1_3:
Homework_chang/Chang - Schedule D - Calendar 2014.pdf
SCHEDULE D (Form 1040)
Department of the Treasury Internal Revenue Service (99)
Capital Gains and Losses ▶ Attach to Form 1040 or Form 1040NR.
▶ Information about Schedule D and its separate instructions is at www.irs.gov/scheduled. ▶ Use Form 8949 to list your transactions for lines 1b, 2, 3, 8b, 9, and 10.
OMB No. 1545-0074
2014 Attachment Sequence No. 12
Name(s) shown on return Your social security number
Part I Short-Term Capital Gains and Losses—Assets Held One Year or Less
See instructions for how to figure the amounts to enter on the lines below. This form may be easier to complete if you round off cents to whole dollars.
(d) Proceeds
(sales price)
(e) Cost
(or other basis)
(g) Adjustments
to gain or loss from Form(s) 8949, Part I,
line 2, column (g)
(h) Gain or (loss) Subtract column (e) from column (d) and
combine the result with column (g)
1a Totals for all short-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 1b .
1b Totals for all transactions reported on Form(s) 8949 with Box A checked . . . . . . . . . . . . .
2
Totals for all transactions reported on Form(s) 8949 with Box B checked . . . . . . . . . . . . .
3
Totals for all transactions reported on Form(s) 8949 with Box C checked . . . . . . . . . . . . .
4 Short-term gain from Form 6252 and short-term gain or (loss) from Forms 4684, 6781, and 8824 . 4 5
Net short-term gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K-1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
6
Short-term capital loss carryover. Enter the amount, if any, from line 8 of your Capital Loss Carryover Worksheet in the instructions . . . . . . . . . . . . . . . . . . . . . . . 6 ( )
7 Net short-term capital gain or (loss). Combine lines 1a through 6 in column (h). If you have any long- term capital gains or losses, go to Part II below. Otherwise, go to Part III on the back . . . . . 7
Part II Long-Term Capital Gains and Losses—Assets Held More Than One Year
See instructions for how to figure the amounts to enter on the lines below. This form may be easier to complete if you round off cents to whole dollars.
(d) Proceeds
(sales price)
(e) Cost
(or other basis)
(g) Adjustments
to gain or loss from Form(s) 8949, Part II,
line 2, column (g)
(h) Gain or (loss) Subtract column (e) from column (d) and
combine the result with column (g)
8a Totals for all long-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 8b .
8b Totals for all transactions reported on Form(s) 8949 with Box D checked . . . . . . . . . . . . .
9
Totals for all transactions reported on Form(s) 8949 with Box E checked . . . . . . . . . . . . .
10
Totals for all transactions reported on Form(s) 8949 with Box F checked . . . . . . . . . . . . . .
11
Gain from Form 4797, Part I; long-term gain from Forms 2439 and 6252; and long-term gain or (loss) from Forms 4684, 6781, and 8824 . . . . . . . . . . . . . . . . . . . . . . 11
12 Net long-term gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K-1 12
13 Capital gain distributions. See the instructions . . . . . . . . . . . . . . . . . . 13 14
Long-term capital loss carryover. Enter the amount, if any, from line 13 of your Capital Loss Carryover Worksheet in the instructions . . . . . . . . . . . . . . . . . . . . . . . 14 ( )
15
Net long-term capital gain or (loss). Combine lines 8a through 14 in column (h). Then go to Part III on the back . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 11338H Schedule D (Form 1040) 2014
Schedule D (Form 1040) 2014 Page 2
Part III Summary
16 Combine lines 7 and 15 and enter the result . . . . . . . . . . . . . . . . . . 16
• If line 16 is a gain, enter the amount from line 16 on Form 1040, line 13, or Form 1040NR, line 14. Then go to line 17 below.
• If line 16 is a loss, skip lines 17 through 20 below. Then go to line 21. Also be sure to complete line 22.
• If line 16 is zero, skip lines 17 through 21 below and enter -0- on Form 1040, line 13, or Form 1040NR, line 14. Then go to line 22.
17 Are lines 15 and 16 both gains? Yes. Go to line 18. No. Skip lines 18 through 21, and go to line 22.
18 Enter the amount, if any, from line 7 of the 28% Rate Gain Worksheet in the instructions . . ▶ 18
19
Enter the amount, if any, from line 18 of the Unrecaptured Section 1250 Gain Worksheet in the instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . ▶ 19
20 Are lines 18 and 19 both zero or blank? Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Form 1040, line 44 (or in the instructions for Form 1040NR, line 42). Do not complete lines 21 and 22 below.
No. Complete the Schedule D Tax Worksheet in the instructions. Do not complete lines 21 and 22 below.
21 If line 16 is a loss, enter here and on Form 1040, line 13, or Form 1040NR, line 14, the smaller of:
• The loss on line 16 or • ($3,000), or if married filing separately, ($1,500) } . . . . . . . . . . . . . . . 21 ( ) Note. When figuring which amount is smaller, treat both amounts as positive numbers.
22 Do you have qualified dividends on Form 1040, line 9b, or Form 1040NR, line 10b?
Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Form 1040, line 44 (or in the instructions for Form 1040NR, line 42).
No. Complete the rest of Form 1040 or Form 1040NR.
Schedule D (Form 1040) 2014
Version A, Cycle 2
INTERNAL USE ONLY DRAFT AS OF February 12, 2014
2014 Form 1040 (Schedule D)
SE:W:CAR:MP
Capital Gains and Losses
SCHEDULE D (Form 1040)
Department of the Treasury Internal Revenue Service
(99)
Capital Gains and Losses
▶ Attach to Form 1040 or Form 1040NR.
▶ Information about Schedule D and its separate instructions is at www.irs.gov/scheduled.
▶ Use Form 8949 to list your transactions for lines 1b, 2, 3, 8b, 9, and 10.
OMB No. 1545-0074
2014
2014. Catalog Number 11338H.
Attachment
Sequence No. 12
Attachment Sequence Number 12. For Paperwork Reduction Act Notice, see your tax return instructions.
Part I
Short-Term Capital Gains and Losses—Assets Held One Year or Less
See instructions for how to figure the amounts to enter on the lines below.
This form may be easier to complete if you round off cents to whole dollars.
See instructions for how to figure the amounts to enter on the lines below. This form may be easier to complete if you round off cents to whole dollars.
(d)
Proceeds
(sales price)
(e)
Cost
(or other basis)
(g)
Adjustments
to gain or loss from Form(s) 8949, Part I, line 2, column (g)
(h) Gain or (loss)
Subtract column (e) from column (d) and combine the result with column (g)
1a
Totals for all short-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 1b
Line 1a. Item 1. (b)
1b
Totals for all transactions reported on Form(s) 8949 with Box A checked
Line 1b. Item 2. (b).
2
Totals for all transactions reported on Form(s) 8949 with Box B checked
Line 1. Item 2. (b).
3
Totals for all transactions reported on Form(s) 8949 with Box C checked
Line 1. Item 3. (b).
4
Short-term gain from Form 6252 and short-term gain or (loss) from Forms 4684, 6781, and 8824
4
5
Net short-term gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K-1
5
6
Short-term capital loss carryover. Enter the amount, if any, from line 8 of your Capital Loss Carryover Worksheet in the instructions
6
( )
7
Net short-term capital gain or (loss). Combine lines 1a through 6 in column (h). If you have any long-term capital gains or losses, go to Part II below. Otherwise, go to Part III on the back
7
Part II
Long-Term Capital Gains and Losses—Assets Held More Than One Year
See instructions for how to figure the amounts to enter on the lines below.
This form may be easier to complete if you round off cents to whole dollars.
See instructions for how to figure the amounts to enter on the lines below. This form may be easier to complete if you round off cents to whole dollars.
(d)
Proceeds
(sales price)
(e)
Cost
(or other basis)
(g)
Adjustments
to gain or loss from Form(s) 8949, Part II, line 2, column (g)
(h) Gain or (loss)
Subtract column (e) from column (d) and combine the result with column (g)
8a
Totals for all long-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 8b
Line 8a. Item 1. (b).
8b
Totals for all transactions reported on Form(s) 8949 with Box D checked
Line 1. Item 2. (b). Totals for all transactions reported on Form(s) 8949 with Box D checked.
9
Totals for all transactions reported on Form(s) 8949 with Box E checked
Line 1. Item 2. (b). Totals for all transactions reported on Form(s) 8949 with Box E checked.
10
Totals for all transactions reported on Form(s) 8949 with Box F checked
Line 1. Item 3. (b). Totals for all transactions reported on Form(s) 8949 with Box F checked.
11
Gain from Form 4797, Part I; long-term gain from Forms 2439 and 6252; and long-term gain or (loss) from Forms 4684, 6781, and 8824
11
12
Net long-term gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K-1
12
13
Capital gain distributions. See the instructions
13
14
Long-term capital loss carryover. Enter the amount, if any, from line 13 of your Capital Loss Carryover Worksheet in the instructions
14
( )
15
Net long-term capital gain or (loss). Combine lines 8a through 14 in column (h). Then go to Part III on the back
15
For Paperwork Reduction Act Notice, see your tax return instructions.
Cat. No. 11338H
Schedule D (Form 1040) 2014
Schedule D (Form 1040) 2014
Page 2
Part III
Summary
16
Combine lines 7 and 15 and enter the result
16
• If line 16 is a gain, enter the amount from line 16 on Form 1040, line 13, or Form 1040NR, line 14. Then go to line 17 below.
• If line 16 is a loss, skip lines 17 through 20 below. Then go to line 21. Also be sure to complete line 22.
• If line 16 is zero, skip lines 17 through 21 below and enter -0- on Form 1040, line 13, or Form 1040NR, line 14. Then go to line 22.
17
Are lines 15 and 16 both gains?
Yes. Go to line 18.
No. Skip lines 18 through 21, and go to line 22.
18
Enter the amount, if any, from line 7 of the 28% Rate Gain Worksheet in the instructions ▶
18
19
Enter the amount, if any, from line 18 of the Unrecaptured Section 1250 Gain Worksheet in the instructions ▶
19
20
Are lines 18 and 19 both zero or blank?
Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Form 1040, line 44 (or in the instructions for Form 1040NR, line 42). Do not complete lines 21 and 22 below.
No. Complete the Schedule D Tax Worksheet in the instructions. Do not complete lines 21 and 22 below.
21
If line 16 is a loss, enter here and on Form 1040, line 13, or Form 1040NR, line 14, the smaller of:
• The loss on line 16 or
• ($3,000), or if married filing separately, ($1,500)
}
21
( )
Note. When figuring which amount is smaller, treat both amounts as positive numbers.
22
Do you have qualified dividends on Form 1040, line 9b, or Form 1040NR, line 10b?
Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Form 1040, line 44 (or in the instructions for Form 1040NR, line 42).
No. Complete the rest of Form 1040 or Form 1040NR.
Schedule D (Form 1040) 2014
- f1_001: PATRICK AND ROSE CHANG
- f1_002: 123-45-6789
- f1_003:
- f1_004:
- f1_005:
- f1_006:
- f1_300:
- f1_301:
- f1_302:
- f1_303:
- f1_007:
- f1_008:
- f1_009:
- f1_010:
- f1_011:
- f1_012:
- f1_013:
- f1_014:
- f1_015:
- f1_016:
- f1_017:
- f1_018: 0
- f1_019: 74,234
- f1_020: 15,375
- f1_021:
- f1_022: 58,859
- f1_304:
- f1_305:
- f1_306:
- f1_307: 0
- f1_023:
- f1_024:
- f1_025:
- f1_026: 0
- f1_027:
- f1_028:
- f1_029:
- f1_030: 0
- f1_031: 0
- f1_032: 0
- f1_033: 0
- f1_034: 0
- f1_035: 58,859
- f2_001: 58,859
- c2_01_0_: Yes
- f2_002: 0
- f2_003: 0
- c2_02_0_: Yes
- f2_005:
- c2_03_0_:
Homework_chang/Chang 2015 Mock Return Workpapers.xlsx
Chang
| Wages | Fed | CA | ||||||
| Patrick | 37,000 | 37,000 | ||||||
| Rose | 120,000 | 120,000 | ||||||
| Interest | Basis | Proceeds | Gains | |||||
| Chase | 1,105 | 1,105 | Schedule D | $15,375 | $74,234 | $58,859 | LT | |
| Dividends | 1,400 | 1,400 | ||||||
| Capital Gains | 58,859 | 58,859 | ||||||
| Tax Refund | 750 | - 0 | ||||||
| Social Security | 19,550 | - 0 | ||||||
| GI/AGI | 238,664 | 218,364 | ||||||
| Itemized Deductions | ||||||||
| Taxes | ||||||||
| 2014 CA Taxes Withheld Patrick | 4,000 | - 0 | ||||||
| 2014 CA Taxes Withheld Rose | 12,000 | - 0 | ||||||
| CA DMV Taxes | 140 | 140 | ||||||
| CA Real Property Taxes | 3,800 | 3,800 | ||||||
| Charitable | 7,000 | 7,000 | ||||||
| Interest Mortgage | - 0 | - 0 | ||||||
| Itemized Deductions | 26,940 | 10,940 | ||||||
| Income After ID B4 Exemptions | 211,724 | 207,424 | ||||||
| Exemptions | 7,900 | - 0 | ||||||
| Taxable Income | 203,824 | 207,424 | ||||||
| Tax Liability | 36,643 | 14,308 | ||||||
| CA Exemption Credit | - 0 | (432) | ||||||
| Tax Liability | 36,643 | 13,876 | ||||||
| Taxes Withheld | 40,000 | 16,000 | ||||||
| Taxes Overpaid/Refunded | (3,357) | (2,124) |
Chang SS
| 1. Enter the total amount from box 5 of all your Forms SSA-1099 and | ||
| Forms RRB-1099. Also, enter this amount on Form 1040, line 20a . . . . . . 1. | 1 | 23,000 |
| 2. Enter one-half of line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. | 2 | 11,500 |
| 3. Enter the total of the amounts from Form 1040, lines 7, 8a, 9a, 10 through 14, 15b, 16b, 17 | ||
| through 19, and 21 . .[ALL TAXABLE INCOME EXCEPT SOCIAL SECURITY] . . 3. | 3 | 219,114 |
| 4. Enter the amount, if any, from Form 1040, line 8b . . . . . [TAX EXEMPT INTEREST] . . . 4. | 4 | - 0 |
| 5. Add lines 2, 3, and 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. | 5 | 230,614 |
| 6. Enter the total of the amounts from Form 1040, lines 23 through 32, plus any write-in | ||
| adjustments you entered on the dotted line next to line 36 . . . .[ANY DEDUCTIONS FOR AGI] . 6. | 6 | - 0 |
| 7. Is the amount on line 6 less than the amount on line 5? | ||
| No. STOP None of your social security benefits are taxable. Enter -0- on Form 1040, line | ||
| 20b. | ||
| Yes. Subtract line 6 from line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. | 7 | 230,614 |
| 8. If you are: | ||
| • Married filing jointly, enter $32,000 | ||
| • Single, head of household, qualifying widow(er), or married filing | ||
| separately and you lived apart from your spouse for all of 2009, | ||
| enter $25,000 }. . . . . . . . . . . . . . 8. | 8 | 32,000 |
| • Married filing separately and you lived with your spouse at any time | ||
| in 2009, skip lines 8 through 15; multiply line 7 by 85% (.85) and | ||
| enter the result on line 16. Then go to line 17 | ||
| 9. Is the amount on line 8 less than the amount on line 7? | ||
| No. STOP None of your social security benefits are taxable. Enter -0- on Form 1040, line | ||
| 20b. If you are married filing separately and you lived apart from your spouse | ||
| for all of 2009, be sure you entered “D” to the right of the word “benefits” on | ||
| line 20a. | ||
| Yes. Subtract line 8 from line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9. | 9 | 198,614 |
| 10. Enter: $12,000 if married filing jointly; $9,000 if single, head of household, qualifying | ||
| widow(er), or married filing separately and you lived apart from your spouse for all of 2009 . . 10. | 10 | 12,000 |
| 11. Subtract line 10 from line 9. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11. | 11 | 186,614 |
| 12. Enter the smaller of line 9 or line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12. | 12 | 12,000 |
| 13. Enter one-half of line 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13. | 13 | 6,000 |
| 14. Enter the smaller of line 2 or line 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14. | 14 | 6,000 |
| 15. Multiply line 11 by 85% (.85). If line 11 is zero, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15. | 15 | 158,622 |
| 16. Add lines 14 and 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16. | 16 | 164,622 |
| 17. Multiply line 1 by 85% (.85) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17. | 17 | 19,550 |
| 18. Taxable social security benefits. Enter the smaller of line 16 or line 17. Also enter this amount | ||
| on Form 1040, line 20b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18. | 18 | 19,550 |
Chang Sch D
| 1. Enter the amount from Form 1040, line 43. However, if you are filing Form | |||
| 2555 or 2555-EZ (relating to foreign earned income), enter the amount from | |||
| line 3 of the Foreign Earned Income Tax Worksheet . . . . . . . . . . . . . . . . . . . . . 1. | 203,824 | 1 | |
| 2. Enter the amount from Form 1040, line 9b* . . . . . . . 2. | 1,400 | 2 | |
| 3. Are you filing Schedule D?* | 58,859 | 3 | |
| Yes. Enter the smaller of line 15 or 16 of Schedule D. If either line 15 or line 16 is | |||
| blank or a loss, enter -0- 3. | |||
| No. Enter the amount from Form 1040, line 13 | |||
| 4. Add lines 2 and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. | 60,259 | 4 | |
| 5. If filing Form 4952 (used to figure investment | |||
| interest expense deduction), enter any amount from | |||
| line 4g of that form. Otherwise, enter -0- . . . . . . . . . . 5. | - 0 | 5 | |
| 6. Subtract line 5 from line 4. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . 6. | 60,259 | 6 | |
| 7. Subtract line 6 from line 1. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . 7. | 143,565 | 7 | |
| 8. Enter: | |||
| $xx,xxx if single or married filing separately, | |||
| $73,800 if married filing jointly or qualifying widow(er), | |||
| $xx,xxx if head of household. . . . . . . . . . . . . . 8. | 73,800 | 8 | |
| 9. Enter the smaller of line 1 or line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9. | 73,800 | 9 | |
| 10. Enter the smaller of line 7 or line 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10. | 73,800 | 10 | |
| 11. Subtract line 10 from line 9. This amount is taxed at 0% . . . . . . . . . . . . . . . . . .11. | - 0 | 11 | |
| 12. Enter the smaller of line 1 or line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12. | 60,259 | 12 | |
| 13. Enter the amount from line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13. | - 0 | 13 | |
| 14. Subtract line 13 from line 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14. | 60,259 | 14 | |
| 15. Enter: | |||
| $xxx,000 if single, | |||
| $xxx,000 if married filing separately, | |||
| $457,600 if married filing jointly or qualifying widow(er), | |||
| $xxx,000 if head of household. | |||
| . . . . . . . . . . . . . 15. | 457,600 | 15 | |
| 16. Enter the smaller of line 1 or line 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16. | 203,824 | 16 | |
| 17. Add lines 7 and 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17. | 143,565 | 17 | |
| 18. Subtract line 17 from line 16. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . .18. | 60,259 | 18 | |
| 19. Enter the smaller of line 14 or line 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19. | 60,259 | 19 | |
| 20. Multiply line 19 by 15% (.15) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20. | 9,039 | 20 | |
| 21. Add lines 11 and 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21. | 60,259 | 21 | |
| 22. Subtract line 21 from line 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22. | - 0 | 22 | |
| 23. Multiply line 22 by 20% (.20) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23. | - 0 | 23 | |
| 24. Figure the tax on the amount on line 7. If the amount on line 7 is less than $100,000, use the Tax Table to figure the tax. If the amount on line 7 is $100,000 or more, use the Tax Computation Worksheet . 24. | 27,604 | 24 | |
| 25. Add lines 20, 23, and 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . 25. | 36,643 | 25 | |
| 26. Figure the tax on the amount on line 1. If the amount on line 1 is less than $100,000, use the Tax Table to figure the tax. If the amount on line 1 is $100,000 or more, use the Tax Computation Worksheet .. 26. | 44,318 | 26 | |
| 27. Tax on all taxable income. Enter the smaller of line 25 or line 26. Also include this amount on Form 1040, line 44. If you are filing Form 2555 or 2555-EZ, do not enter this amount on Form 1040, line 44. Instead, enter it on line 4 of the Foreign Earned Income Tax Worksheet 27. | 36,643 | 27 | |
| *If you are filing Form 2555 or 2555-EZ, see the footnote in the Foreign Earned Income Tax Worksheet before completing this line. |
Homework_chang/Homework-Directions.docx
HOMEWORK - 2015 ACTG 67: California Problem 2 Patrick and Rose Chang
Patrick was born August 31, 1947 and worked as a hardware engineer at JCN Corporation, his taxable wages (after 401k deductions, etc.) is $37,000 for 2014 (he retired in March 2014). His wife Rose (born September 15, 1947) is an accounting manager for Holloway Systems – she earned $120,000 during the year. Their wage amounts are the same for federal and California. Patrick received $23,000 in gross social security payments from the federal government.
Patrick has had $10,000 of Federal income taxes withheld from his paychecks and $4,000 California income taxes withheld from his paychecks. Lilly had $27,700 Federal income tax and $12,000 California income tax withheld from her paycheck. Patrick had $2,300 of federal income taxes withheld on his social security payments.
They have sold some stocks during the year – see Schedule D. All stocks were purchased after 2011 and the basis has been reported by the brokerage to the IRS, thus only Schedule D is required for reporting for federal purposes. You may assume that the cost basis for California purposes is the same as for federal purposes. None of the stocks sold are qualified small business stock.
They received $1,400 of qualified dividend income from their JCN Corporation stock. They also received interest income of $1,105 from Chase Bank.
In April 2014, the Chang’s filed their 2013 California income tax return and received a $750 tax refund from the state of California. They itemized their deductions in 2013.
They have children but they have graduated from college and moved out – they provide no support.
They have owned their own home in San Jose since 1983, their mortgage is all paid off, and they have property taxes of $3,800. They own two cars and the deductible part of their DMV fees is $140.
Here is a list of the Chang’s cash donations to various organizations:
Saint Joseph’s Church $2,000
San Jose Mercury News Book Drive $500
San Jose State University (Fundraising Campaign) $2,000
American Red Cross $2,000
Make-A-Wish Foundation $500
With time on his hands, Patrick has prepared and filed the family Form 1040 but he has hired you to prepare the California Form 540 (and any required schedules). You have reviewed the Federal forms and have already concluded they are correct.
You need to prepare a California Form 540 and a California Schedule CA540. If required, you should also prepare a California Schedule D540 (hint: read the directions). You may assume there is NO Federal or California AMT to consider.
Check figure: Form 540, Line 91 Overpaid Tax is $2,124.
