business HW

BUS-121 Spring 2017 Chapter 3 – Form 1040 Name: Instructor: Frank Caperino Supplemental Tax Assignment Due: Thursday, Sep 29

Sam and Janet Evening need help with their taxes. They have no children. Below are the numbers you will need to help them complete their tax return. Follow the first and second tax exercise example handouts and fill in their Form 1040 tax return. (Hint: Do you see the asterisks next to certain lines? Hmmm?) The itemized deductions from Schedule A on line 40, the personal exemptions on line 42, and the tax on lines 44 and 47 (and a few other lines) are already computed for you. You do not need to complete Schedule A, Itemized Deductions. (5 points)

Wages, salaries, tips, etc. from Form(s) W-2 (gross income) $41,950

Taxable interest (gross income) 50

IRA deduction (adjustment to income) 1,000

Student loan interest deduction (adjustment to income) 1,000

Itemized deductions (from Schedule A – line 40) 18,000

Personal exemptions (2 persons * $3,950 – line 42) 7,900

Taxes (already computed from tax tables – lines 44 and 47 and a few others...) 1,413

Federal income tax withheld from W2 form (line 64) 1,800

Note to online students: You can use the Form 1040 on pages 2 and 3 of this document. They are very similar to the two Form 1040 tax handouts from this chapter. This requires you to print the two pages, hand-write the information, scan the two pages, and submit them as a single or multiple pdf or graphic files. Or you could demonstrate your advanced document handling skills and use the IRS-supplied Form 1040 pdf file that is on the class web page or available directly from the IRS web site (www.irs.gov). Using Adobe Acrobat Reader (or any of the many other pdf-enabled programs), you can type the above information directly into the Form 1040 form, save it, and submit it directly as a pdf file. Won’t you be proud of yourself?! (Currently, the legal problem with saving data to pdf files is that a signature must still be hand-written. Therefore, you still need to print the document and sign manually before it is a legal document. There are currently a few systems that allow for “digital signatures” but eventually, there will be a standard “digital signature” protocol that allows people to digitally “sign” all contracts and other legal documents. When you file your tax returns electronically, you are “digitally signing” the tax return according to the specifications created by the IRS and used by the vendors who offer electronic filing.)

Reprint of other part of assignment from handout / assignments / notes document for chapter 3: Required: Tax questions for the IRS (www.irs.gov or 800-829-1040) – Be careful! Make sure your information is current! 1) What are the maximum amounts that can be contributed to a Traditional IRA, Roth IRA and 401(k) per year? 2) What is the maximum amount of capital loss that can be deducted from your income taxes per year? 3) How long is the extension of time to file your income taxes that Form 4868 gives a taxpayer? 4) What percentage(s) of the estimated taxes should an individual taxpayer pay through withholding? Careful! 5) What are the names of the 2 or 3 types of educational tax credits available to college students & their parents? (5 points) – When researching the above questions, make sure you find the data for 2015!

Important Note: There are two parts to this assignment! The Form 1040 above � and the IRS questions below f.

j 1040 I (Q) 14I

-1

Department of the Treasury-Internal Revenue Service (99)

U.S. Individual Income Tax Return

OMB No. 1545-0074 1 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

SA M Last name

tV E:1'l 1NG. Your social security number

t i\ -i t -'61 1 If a joint return, spouse's first name and initial

TA NEtiE Last name

EV EN I N Spouse's social security number

n<?- \<i?- \ ' Home address (number and street) . If you have a P.O. box, see instructions.

(loo OTAY L A KES RoA D I Apt. no. .& Make sure the SSN(s) above

and on line 6c are correct. City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions).

C \-\ U LJ\ \/ lSTA I CA q (C\ lO Foreign country name I Foreign province/state/county I 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. D You OSpouse

Filing Status O Single 4 D Head of household (with qualifying person).(See instructions.) If 2 Married filing jointly (even if only one had income) the qualifying person is a child but not your dependent, enter this

Check only one box.

3 0 Married filing separately. Enter spouse's SSN above child's name here. .... and full name here. .... 5 O Qualifying widow(er) with dependent child

Exemptions 6a b

If more than four dependents , see instructions and check here .... D

Yourself. If someone can claim you as a dependent , do not check box 6a . } Boxes checked ') on 6a and 6b

Spouse · 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

Income

d Total number of exemptions claimed lines above ....

Attach Form(s) W-2 here. Also

attach Forms b Qualified dividends W-2G and 10 Taxable refunds, credits, or offsets of state and local income taxes 10 if tax 11 Alimony received 11

12

D 13 14

get a W-2,

Pensions and annuities

Rental

15b

16b

Schedule E 17 18 19

20b

21

.,.. 22

t 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 mstruct1ons. Cat. No. 113208 Form 1040 (2014) f

1 ·9b. I I

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)

D D D D

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 Ba I 8b I I -

9a Ordinary dividends. Attach Schedule B if required 9a

was withheld. 12 Business income or (loss). Attach Schedule C or C-EZ

13 Capital gain or (loss). Attach Schedule D if required. If not required, check here .... If you did not 14 Other gains or (losses). Attach Form 4797 . see instructions. 15a

16a IRA distributions I !::I I I b Taxable amount

b Taxable amount

17 real estate, royalties, partnerships, S corporations , trusts, etc. Attach 18 Farm income or (loss). Attach Schedule F . 19 Unemployment compensation 20a Social security benefits I 20a I I I b Taxable amount 21 Other income. List type and amount 22 Combine the amounts in the far right column for lines 7 through 21. This is your total income 23 Educator expenses 23 Adjusted 24 Certain business expenses of reservists, performing artists, and Gross fee-basis government officials.Attach Form 2106 or 2106-EZ 24 Income 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 31a 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

Tax and :heck { L

Credits

box on line

41 Subtract line 40 from line 38 I

orm 1040 (2014) Page 2 .

38 Amount from line 37 (adjusted gross income) 38 39a O You were born before January 2, 1950, O Blind. } Total boxes

O Spouse was born before January 2, 1950, O Blind. checked 1111- 39a b If your spouse itemizes on a separate return or you were a dual-status alien, check here II>- 39b0

Standard Itemized deductions (from Schedule A) or your standard deduction (see left margin) 40 Deduction 41 for- • People who 42 Exemptions. If line 38 is $152,525 or less, multiply $3,950 by the number on line 6d. Otherwise, see instructions 42 check any 43 Taxable income. Subtract line 42 from line 41. If line 42 is more than line 41 , enter -0- 43 39a or 39b or 44 Tax (see instructions). Check if any from: a D Form(s) 8814 b D Form 4972 c D 44

IC who can be claimed as a 45 Alternative minimum tax (see instructions). Attach Form 6251 45 dependent,

Single or

Excess advance premium tax credit repayment. Attach Form 8962 46

-=*

$12,400

57 Self-employment tax. Attach Schedule SE 57 Other 58 Unreported social security and Medicare tax from Form: a D 4137 b D 8919 58 Taxes 59 Additional tax on IRAs, other qualified retirement plans, etc. Attach Form 5329 if required 59

60a 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 D 61 62 Taxes from: a DForm 8959 b D Form 8960 c D Instructions; enter code(s) 62

63 Add lines 56 through 62. This is vour 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 66a Earned income credit (EiC) 66a qualifying child, attach b Nontaxable combat pay election ·, 6b ,·

,·

73 Credits from Form: a D 2439 b D Reserved c D Reseived d D ---

73 74 Add lines 64, 65, 66a, and 67 through 73. These are your total payments..................................... 74

Refund 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 1111- D 76a

Direct deposit? 1111- b Routing number o Io2.0 3040 1111- c Type: Checking D Savings See .... d Account number () q O <i' 010<o 050 instructions.

77 Amount of line 75 you want applied to your 2015 estimated tax 1111- 77 I Amount 78 Amount you owe. Subtract line 74 from line 63. For details on how to pay, see instructions ........... 78 You Owe 79 Estimated tax penalty (see instructions) . I 79 I I I Third Party Do you want to allow another person to discuss this return with the IRS (see instructions)? D Yes. Complete below. D No Designee Designee's

name 1111- Phone no. 1111-

Personal identification number (PIN) 1111-

Sign Here Joint return? See instructions. Keep a copy for your records.

Under penalties of perjury, Ideclare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, corr t , and complete. Declaration of preparer (other than taxpayer) is based on all information of w hich preparer has any knowledge. Your signatur Date Your occ upation Daytime phone number

15 A , o L oufllC:c E 'S t 1'l6E le l't -4- 1 -C, 7oc If the IRS sent you an Identity Protection PIN, enter it here see inst.

Paid Preparer Use Only

Firm's name .,.. Firm's EIN .... Firm's address .,.. Phone no.

PTIN

www.irs.gov/form1040 Fonm 1040 (2014)

* see 46 instructions. 47

Add lines 44, 45 , and 46 .... 47

• All others: 48 Foreign tax credit. Attach Form 1116 if required . 48

Married filing 49 Credit for child and dependent care expenses. Attach Form 2441 49 separately, $6,200 50 Education credits from Form 8863, line 19 50 Married filing 51 Retirement savings contributions credit. Attach Form 8880 51 jointlx or Quahfyin1 52 Child tax credit. Attach Schedule 8812 , if required . 52 widow(er , 53 Residential energy credits. Attach Form 5695 53 Head of household, $9,100

54 55

56

Other credits from Form: a D 3800 b D 8801 c D --- 54 Add lines 48 through 54.These are your total credits 55 Subtract line 55 from line 47. If line 55 is more than line 47, enter -0- ..................................................56

Schedule EiC. 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