Tax Return Situation 1:  

Please, prepare Form 1040A for Thomas.

Thomas Thomson (D.O.B. 8/02/1947) is married to Ruth Ribeiro (SSN 342-23-9012). Thomas and Ruth separated and they started living apart on May 15, 2013. They are going to file separately. Tommy Thomson JR (SSN 619-19-9212 Date of Birth 2-25-1998) is their son. Tommy lived with Thomas all year. Ruth provided $4,000 to Tommy for the year. $1,000 of this money was used for Tommy's support and the remaining $3,000 was kept in a savings account. In addition, Ruth gave Tommy a $950 flat screen TV for his birthday. Tommy uses the TV in his room.

Currently Thomas is living with his new girlfriend Sara Smith (SSN 534-34-5987) and his son Tommy. There are three people living in the household.

Thomas paid $28,800 rent for the year. Utilities amount (including heat, light, water, etc.) was $3,600. Repairs for the home were $2,000.

Total clothing expense for Tommy was $400 and other expenses were $200.

The following is Thomas Thomson's W2 for the year (notice the retirement plan box is marked). All information is correct including address.

Additionally, Thomas received Form 1099-DIV showing total dividends of $1,475 and he also received unemployment compensation of $2,500.

Thomas paid student loan interest of $2,800. He also wants to make the maximum IRA contribution to lower his taxes on his tax return on April 15, 2014 and thus increase his refund or lower his amount owed.

Tax Return Situation 2:

Please, prepare Form 1040A for Oscar.

Oscar Lyndon was born on March 3, 1948.

Oscar is married to Michelle Rhodes. They lived together until they separated on March 20, 2013. Oscar does not know the current whereabouts of his wife. He believes that she did not work all year in 2013. Michelle's social security number is 674-09-8990.

He received Form SSA-1099 showing in box 5 $23,300 is Social Security Benefits. Additionally, he received the following W-2 Form. All information is correct including address.

After you have prepared the tax returns, please complete the following questions. Please also submit the answers one by one in step 2 above.

1. Look at the Form 1040A you prepared for Thomas. What is the amount on line 7?

A. $65,897.
B. $68,903.20
C. $65,897.48
D. None of the above.

2. Look at the Form 1040A you prepared for Thomas. What is the amount on line 9a?

A. $1,500.
B. $1,475.
C. $0
D. None of the above. 

3. What is the amount on Schedule B, line 6?

A. $1,500.
B. $1,475.
C. $0, Schedule B is not required.
D. None of the above.

4. Look at the Form 1040A you prepared for Thomas. What is the amount on line 11b?

A. $5,000.
B. $10,000.
C. $6,500.
D. $0, there is not reason to put an amount here.

5. Look at the Form 1040A you prepared for Thomas. What is the amount on line 13?

A. $2,500.
B. $2,400.
C. $1,500.
D. $0, there is not reason to put an amount here.

6. Look at the Form 1040A you prepared for Thomas. What is the amount on line 15?

A. $69,872
B. $65,897
C. $69,872.48
D. $0, there is not reason to put an amount here.

7. Look at the Form 1040A you prepared for Thomas. What is the amount on line 17?

A. $69,872.
B. $0
C. $5,000.
D. $6,500.

8. Look at the Form 1040A you prepared for Thomas. What is the amount on line 18?

A. $1,155
B. $2,800 
C. $2,500
D. None of the above.

9. Look at the Form 1040A you prepared for Thomas. What is the amount on line 24?

A. $8,700
B. $5,950
C. $11,900
D. None of the above.

10. Look at the Form 1040A you prepared for Thomas. What is the amount on line 26?

A. $3,700.
B. $7,400
C. $11,100.
D. None of the above.

11. Look at the Form 1040A you prepared for Thomas. What the is amount on line 27?

A. $53,117
B. $54,772
C. $55,172
D. None of the above.

12. Look at the Form 1040A you prepared for Thomas. What is amount on line 28?

A. $53,117
B. $7,400
C. $8,061
D. None of the above.

13. Look at the Form 1040A you prepared for Thomas. What is the amount of AMT included in the amount on line 28? (Prepare the worksheet).

A. $ 3,525.
B. $ 4,536.
C. $0; Thomas does not owe this tax.
D. $ 8,061.

14. Look at the Form 1040A you prepared for Thomas. What is amount on line 33?

A. $1,000.
B. $250
C. $256
D. $0, these is no need to do this calculation.

15. Look at the Form 1040A you prepared for Thomas. What is amount on line 36?

A. $9,884.62
B. $9,885
C. $0; Thomas did not pay any federal tax.
D. $4,272
                 

16. Look at the Form 1040A you prepared for Thomas. What is amount on line 38a?

A. Thomas needs to file Form 1040 instead of Form 1040A to claim EIC.
B. $0; EIC Credit amount does not need to be considered because Thomas is over 65.
C. $0; Thomas income is over the amount to qualify for the EIC.
D. $5,751

17. Look at the Form 1040A you prepared for Thomas. What is amount on line 39?

A. $750
B. $7,061
C. $0
D. None of the above.

18. Look at the Form 1040A you prepared for Thomas. What is amount on line 41?

A. $2,824
B. $9,885
C. $7,061 
D. There is no reason to enter an amount here.

19. Look at the Form 1040A you prepared for Thomas. What is amount on line 42?

A. $9,885
B. $7,061
C. $311.
D. $512. 

20. Look at the Form 1040A you prepared for Thomas. What is amount on line 45?

A. $0; Thomas is getting a refund.
B. $9,885
C. $7,061
D. None of the above.

21. Look at the Form 1040A you prepared for Oscar Lyndon. What is the amount on line 7?

A. $16,400.49.
B. $16,400.
C. $0.
D. $9,885.

22. Look at the Form 1040A you prepared for Oscar Lyndon. What is the amount on line 8a?

A. $0.
B. $16,400.
C. $400.
D. There is no reason to enter an amount here.

23. Look at the Form 1040A you prepared for Oscar Lyndon. What is the amount on line 14a?

A. $18,300.
B. $16,400.
C. $400.
D. None of the above.

24. Look at the Form 1040A you prepared for Oscar Lyndon. What is the amount on line 14b?

A. $18,300.
B. $275.
C. $19,805.
D. $16,400.

25. Look at the Form 1040A you prepared for Oscar Lyndon. What is the amount on line 15?

A. $18,300.
B. $475.
C. $16,675.
D. None of the above.

26. Look at the Form 1040A you prepared for Oscar Lyndon. What is the amount on line 22?

A. $18,300.
B. $36,205.
C. $16,675.
D. $0.

27. Look at the Form 1040A you prepared for Oscar Lyndon. What is the amount on line 24?

A. $5,950
B. $11,900
C. $7,400
D. None of the above.

28. Look at the Form 1040A you prepared for Oscar Lyndon. What is the amount on line 26?

A. $3,700.
B. $475.
C. $3,900
D. $7,250.

29. Look at the Form 1040A you prepared for Oscar Lyndon. What is the amount on line 27?

A. $3,700.
B. $5,725.
C. $5,475
D. None of the above

30. Look at the Form 1040A you prepared for Oscar Lyndon. What is the amount on line 28?

A. $548
B. $6,325.
C. $3,308.
D. $7,250.

31. Look at the Form 1040A you prepared for Oscar Lyndon. What is the amount on line 30?

A. $3,700.
B. $6,325.
C. $633.
D. $0; The credit does not need to be calculated because he received over $5,000 in Social Security benefits.

32. Look at the Form 1040A you prepared for Oscar Lyndon. What is the amount on line 36?

A. $2,460.
B. $6,325.
C. $633.
D. $0.

33. Look at the Form 1040A you prepared for Oscar Lyndon. What is the amount on line 38a?

A. $3.
B. $0; there is no need to calculate the amount because Oscar is over 65 years old.
C. I looked at the EIC Table and the result is $0 for the income Oscar earned.
D. $464.

34. Look at the Form 1040A you prepared for Oscar Lyndon. What is the amount on line 42?

A. $2,460.
B. $1,912
C. $1,887.
D. $0.

35. Look at the Form 1040A you prepared for Oscar Lyndon. What is the amount on line 43a?

A. $2,460.
B. $1,912
C. $0.
D. $1,887.

36. Look at the Form 1040A you prepared for Oscar Lyndon. What is the amount on line 45?

A. $2,460.
B. $668
C. $633.
D. $0.

Please note: If you are answering the questions directly on this page, make sure you print them before you click on "Assignment" in step 2 above. If you don't have a printer, then write the answers down before you proceed.