Task 1 - Filing A Federal Tax Return

In this tax subject, we will review some tax rules that affect every person who may have to file a federal income tax return. We will cover topics such as who must file, what filing status and how many exemptions to use. In addition, this subject is about the standard deduction and taxpayers who do not itemize their deductions.

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Tax Subject 1 - Filing a Federal Tax Return

Please use the IRS Publication 501, IRS Publication 555, Form 1040A, Form 8958 and Form 1040A Instructions to complete this assignment.

Tax Return filing situation 1:

Use the following W-2's and information to prepare a tax return for Jeffrey Sayar and Rita Ruggiero.

Jeffrey (Date of Birth 3/04/1947) and Rita (Date of birth 6/15/1957) were married throughout the year but did not live together at any time during the year. They will file their tax returns as Married filing separate. Jeff and Rita did not live together any part of 2013. So you need to file a tax return for Jeffrey and another one for Rita. They did not file a joint return or transfer any of their earned income between themselves. During the year their income (including W-2's) were as follows:

Jeffrey received dividends from stock he owned before their marriage of $1,570. Rita received dividends of $1,463 from stock she owned before the marriage.

Jeffrey and Rita received interest from an interest bearing account held jointly of $2,300.

Jeffrey received $21,650 Social Security benefits reported on box 5 of Form SSA-1099.                                                                     

Tax Return filing situation 2:

Henry (Date of birth 5/9/1948) and Esther Ralph (Date of birth 7/02/1950) are married. Their two children (18-year-old twins) Debra Ralph (SSN 619-01-0121), Sandra Ralph (SSN 619-01-0122)  and Esther's mother Sara Vinson (SSN 025-62-8795), lived with them and qualify as their dependents. Amounts paid for their support where paid out of community funds. Ralph and Esther have decided that Esther will claim her mom and that Ralph will claim the twins.

Henry received $926 in dividends from stock that he owned before the marriage.

Esther received $1,460.01 in dividends from stock that she owned before the marriage.

Esther contributed $6,000 to an IRA for an IRS deduction on her 2013 tax return.

Henry received $34,758 Social Security benefits reported on box 5 of Form SSA-1099.

Use the following information to file a tax return for Henry and Esther. They need to file separate returns. They have lived together for all of 2013. The address and personal information is current and correct on the W-2's. They will not itemize their deductions.

 

After you have completed the above tax returns, answer the following questions as accurate as possible:

 

1. Look at the Form 1040A that you prepared for Jeffrey. What is the amount on Line 7?

A. $18,200
 B. $51,380
 C. $84,560
D.  None of the above

2. Look at the Form 1040A that you prepared for Jeffrey. What is the amount on Line 8a?

A. $1,150
 B. $2,300
 C. $1,200
 D. None of the above

3. Look at the Form 1040A that you prepared for Jeffrey. What is the amount on Line 9a?

A. $785
 B. $1,570
 C. $1,516.50
 D. None of the above

4. Look at the Form 1040A that you prepared for Jeffrey. What is the amount on Line 14b?

A. $21,650
 B. $18,403
C. $3,373
D. None of the above

5. Look at the Form 1040A that you prepared for Jeffrey. What is the amount on Line 15?

A. $24,293
 B. $21,932
 C. $20,500
 D. $42,570

6. Look at the Form 1040A that you prepared for Jeffrey. What is the amount on Line 24?

A. $7,100
 B. $7,300
 C. $7,250
 D. $6,100 

7. Look at the Form 1040A that you prepared for Jeffrey. What is the amount on Line 26?

A. $3,700
 B. $3,800
 C. $7,250
 D. None of the above

8. Look at the Form 1040A that you prepared for Jeffrey. What is the amount on Line 28?

A. $1,231
 B. $1,515
 C. $768
 D. $1,219

9. Look at the Form 1040A that you prepared for Jeffrey. What is the amount on Line 30?

A. $1,950
B. $2,400
C. $0
D. None of the above

10. Look at the Form 1040A that you prepared for Jeffrey. What is the amount on Line 36?

A. $1,664
 B. $1,802 
C. $7,032
 D. None of the above

11. Look at the Form 1040A that you prepared for Rita. What is the amount on Line 7?

A. $51,380
 B. $84,560
 C. $85,600
 D. None of the above

12. Look at the Form 1040A that you prepared for Rita. What is the amount on Line 8a?

A. $1,200
 B. $1,150
 C. $2,300
 D. None of the above


13. Look at the Form 1040A that you prepared for Rita. What is the amount on Line 9a?

A. $1,463
 B. $732
 C. $731.50
D. $1,200

14. Look at the Form 1040A that you prepared for Rita. What is the amount on Line 14b?

A. $0
 B. $1,687
 C. $3,373
D. $1,686.50

15. Look at the Form 1040A that you prepared for Rita. What is the amount on Line 15?

A. $50,683
 B. $86,750
 C. $87,090
 D. None of the above
                 

16. Look at the Form 1040A that you prepared for Rita. What is the amount on Line 24?

A. $7,300
 B. $5,950
 C. $6,100
 D. $8,500

17. Look at the Form 1040A that you prepared for Rita. What is the amount on Line 26?

A. $7,800
 B. $7,400
C. $3,900
D. None of the above

18. Look at the Form 1040A that you prepared for Rita. What is the amount on Line 28?

A. $15,541
 B. $15,230
 C. $0
 D. $16,636

19. Look at the Form 1040A that you prepared for Rita. How much of the amount on line 28 pertains to the AMT? (Prepare the worksheet)   

A.  $12,801
 B. $15,588
 C. $0
 D. $8,061

20. Look at the Form 1040A that you prepared for Rita. What is the amount on Line 36?

A. $12,400
 B. $15,230
 C. $7,032
D. $16,602

21. Look at the Form 1040A that you prepared for Henry. What is the amount on Line 7?

A. $13,000
B. $51,427
 C. $15,432
D. $41,037

22. Look at the Form 1040A that you prepared for Henry. What is the amount on Line 9a?

A. $463
 B. $208.50
C. $926
 D. $780

23. Look at the Form 1040A that you prepared for Henry. What is the amount on Line 14a?

A. $34,758
 B. $20,145
 C. $29,280
 D. $11,850

24. Look at the Form 1040A that you prepared for Henry. What is the amount on Line 14b?

A. $23,700
 B. $20,145
C. $24,888
D. $29,544

25. Look at the Form 1040A that you prepared for Henry. What is the amount on Line 24?

A. $7,100
 B. $6,000
 C. $7,300
 D. None of the above 

26. Look at the Form 1040A that you prepared for Henry. What is the amount on Line 26?

A. $11,100
 B. $11,700
 C. $3,800
 D. $11,400

27. Look at the Form 1040A that you prepared for Henry. What is the amount on Line 28?

A. $11,648
 B. $8,519
 C. $8,581
 D. None of the above.

28. Look at the Form 1040A that you prepared for Henry. What is the amount on Line 30?

A. $11,100
 B. $8,519
 C. $0
 D. $618

29. Look at the Form 1040A that you prepared for Henry. What is the amount on Line 36?

A. $5,118
 B. $5,470
 C. $293
 D. $2,959

30. Look at the Form 1040A that you prepared for Henry. What is the amount on Line 45?

A. $6,178
 B. $4,593
 C. $3,401
 D. $5,700

31. Look at the Form 1040A that you prepared for Esther. What is the amount on Line 7?

A. $51,427
 B. $82,074.90
C. $82,075
D. $95,075

32. Look at the Form 1040A that you prepared for Esther. What is the amount on Line 9a?

A. $1,230
 B. $1,460
 C. $209
 D. $208.50

33. Look at the Form 1040A that you prepared for Esther. What is the amount on Line 14b?

A. $10,072.50
 B. $200
 C. $0
 D. $10,073

34. Look at the Form 1040A that you prepared for Esther. What is the amount on Line 15?

A. $47,737
 B. $52,887
C. $95,074.90
D. $48,767

35. Look at the Form 1040A that you prepared for Esther. What is the amount on Line 17? (Prepare the worksheet).

A. $5,000
 B. $0
 C. $2,500
 D. None of the above

36. Look at the Form 1040A that you prepared for Esther. What is the amount on Line 24?

A. $6,100
 B. $5,950
 C. $5,800
 D. $7,100

37. Look at the Form 1040A that you prepared for Esther. What is the amount on Line 26?

A. $7,400
 B. $7,600
C. $7,800
 D. None of the above

38. Look at the Form 1040A that you prepared for Esther. How much of the amount on line 28 is AMT? (Prepare the worksheet).

A. $4,756
 B. $0
 C. $2,378
 D. None of the above

39. Look at the Form 1040A that you prepared for Esther. What is the amount on Line 30?

A. $0
 B. $3,200
C. $5,118
 D. None of the above

40. Look at the Form 1040A that you prepared for Esther. What is the amount on Line 36?

A. $10,592
 B. $10,591.79
C. $5,470
 D. $5,118.43

Please Note:  If you filled out the answers directly on this page, please print this page or write down the answers before you proceed to submit them by clicking on "Assignment" in step 3 above.

 

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Revised: 08/12/14