Tax School Homepage
Student Instructions: Follow the following 5 steps:
| Step |
Instructions - You must do all of the following (steps 1 - 5) |
Links: |
|
(We must receive from you both an assignment and a quiz for each Tax Subject) |
||
| 1 |
Print the checklist: |
 |
| 2 |
Read the reading material and answer the questions on this page. |
Reading Material |
| 3 | Submit the answers to the Assignment online (the questions on this page). Scroll down for all questions on this page. When you are ready to submit click on the Assignment link. Make sure you either write your answers or print the page before you click on the assignment link. | Assignment |
| 4 | Complete a quiz on the reading material: Quiz Online. You have 60 minutes to complete 40 questions for this quiz. You must study the reading material. You won't have time to look up questions in the reading material. | Quiz Online |
| 5 | Go to Grades & Certificates for instructions on retrieving your grade results and Certificates. | Grades & Certificates |
Important: If you fail a topic you can try again until you pass. However, you cannot try again until 24 hours later. Every time you try the questions will be different. You will be disqualified from completing this Item if you do not allow the proper 24 hours in between tries. If you are disqualified, you will be notified through email of the substitute topic to complete.
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Please use IRS Publication 525, IRS Publication 531, Form 1040, Form 6251, Form 4137, Form 8812 and Form 1040 Instructions (Form 1040 instructions only up to page 98) to complete topic 3 assignment in step 2 and to study for the online tax quiz in step 3 above.
Please note: Form 1040 Instructions (Form 1040 instructions only) will be used for the rest of the topics in the initial tax preparer certification course. You will be responsible to answer questions from the Form 1040 instructions booklet on every topic so read it carefully.
| $2,650.00 in Unemployment Compensation. | |
| $600 bonus promised to be paid by his employer in February 2014. | |
| Turkey valued at $50 for the December holidays. |
Yohannes owed Sears & Roebuck (Department store) $800. He fell behind on the bill and could not pay. To have Yohannes settle the debt, Sears offered to cancel $500 of the debt. Yohannes paid only $300 and the rest was forgiven.
He paid rent at a government owned building that is exempt from tax.
Get all his basic information from the following W2, including income information.
Tax Return filing Situation 2:
Please prepare Form 1040 for Benjamin and Olivia.
Benjamin (Date of Birth 03/04/1970) and Olivia (Date of Birth 01/20/1971) are married and lived together all of 2013.
Benjamin and Olivia had the following dependents in 2013. They fully supported them for all of 2013.
| First Name | Last Name | Social Security Number | Relationship | Date of Birth | Months in Home |
| Henry | Smith | 611-15-4755 | Son | 02-01-2004 | 12 |
| Lizzy | Smith | 610-15-4756 | Daughter | 08-10-2005 | 12 |
| Ryan | Smith | 611-15-4757 | Son | 10-22-2007 | 12 |
| William | Smith | 611-15-4758 | Son | 12-27-2009 | 12 |
Benjamin and Olivia each have contributed $6,500 to a traditional IRA account on March 20, 2014.
Olivia has a record of all tips received. She recorded them on a daily basis as per date worked. The following monthly totals are taken from Olivia's record of tips:
| Olivia Smith - Tips | |
| December 2012 | $300 |
| January 2013 | $240 |
| February 2013 | $300 |
| March 2013 | $19 |
| April 2013 | $255 |
| May 2013 | $300 |
| June 2013 | $18 |
| July 2013 | $15 |
| August 2013 | $240 |
| September 2013 | $240 |
| October 2013 | $255 |
| November 2013 | $210 |
| December 2013 | $300 |
Additionally, Olivia won money from a raffle held at work in the amount of $1,500.
Benjamin and Olivia received the following for 2013. Basic information is correct on all Form W-2s.
After you have completed the above tax returns, answer the following questions:
1. Look at the Form 1040 you prepared for Yohannes Mulugeta. What is the amount on Form 1040, Line 7?
A. $20,359.
B. $17,679.
C. $16,806.
D. $19,409.
2. Look at the Form 1040 you prepared for Yohannes Mulugeta. What is the amount on Form 1040, Line 19?
A. $2,650.
B. $10,729.
C. $8,329.
D. $7,829.
3. Look at the Form 1040 you prepared for Yohannes Mulugeta. What is the amount on Form 1040, Line 21?
A. $2,650.
B. $500.
C. $8,329.
D. $7,829.
4. Look at the Form 1040 you prepared for Yohannes Mulugeta. What is the amount on Form 1040, Line 38?
A. $2,650.
B. $500.
C. $19,956.
D. $7,829.
5. Look at the Form 1040 you prepared for Yohannes Mulugeta. What is the amount on Form 1040, Line 40?
A. $5,950.
B. $11,900.
C. $6,100.
D. $7,829.
6. Look at the Form 1040 you prepared for Yohannes Mulugeta. What is the amount on Form 1040, Line 42?
A. $3,900.
B. $3,800.
C. $19,956.
D. $7,829.
7. Look at the Form 1040 you prepared for Yohannes Mulugeta. What is the amount on Form 1040, Line 44?
A. $1,099.
B. $1,050.
C. $1,146.
D. $7,829.
8. Look at the Form 1040 you prepared for Yohannes Mulugeta. What is the amount on Form 1040, Line 62?
A. $1,664.
B. $3,700.
C. $1,146.
D. $7,829.
9. Look at the Form 1040 you prepared for Yohannes Mulugeta. What is the amount on Form 1040, Line 73?
A.
$565.
B. $518.
C. $615.
D. $7,829.
10. Look at the Form 1040 you prepared for Yohannes Mulugeta. What is the amount on Form 1040, Line 74a?
A. $1,664.
B. $615.
C. $518.
D.
$565.
11. Look at the Form 1040 you prepared for Benjamin and Olivia. What is the amount on Form 1040, Line 7?
A. $114,803.
B.
$115,531.
C. $114,751.
D. $117,829.
12. Look at the Form 1040 you prepared for Benjamin and Olivia. What is the amount on Form 1040, Line 21?
A. $117,951.
B. $0.
C. $1,500.
D. $7,829.
13. Look at the Form 1040 you prepared for Benjamin and Olivia. What is the amount on Form 1040, Line 22?
A. $117,951.
B. $116,303.
C. $119,451.
D. $117,031.
14. Look at the Form 1040 you prepared for Benjamin and Olivia. What is the amount on Form 1040, Line 32?
A. $13,000.
B. $0.
C. $6,500.
D. $11,000.
15. Look at the Form 1040 you prepared for Benjamin and Olivia. What is the amount on Form 1040, Line 36?
A. $13,000.
B. $0.
C.
$6,500.
D. $11,000.
16. Look at the Form 1040 you prepared for Benjamin and Olivia. What is the amount on Form 1040, Line 38?
A. $105,303.
B. $109,451.
C. $107,031.
D. $7,829.
17. Look at the Form 1040 you prepared for Benjamin and Olivia. What is the amount on Form 1040, Line 40?
A. $11,900.
B. $109,451.
C. $12,200.
D. $7,829.
18. Look at the Form 1040 you prepared for Benjamin and Olivia. What is the amount on Form 1040, Line 42?
A. $25,900.
B. $23,400.
C.
$26,600.
D. $7,829.
19. Look at the Form 1040 you prepared for Benjamin and Olivia. What is the amount on Form 1040, Line 44?
A. $9,409.
B. $109,451.
C. $9,566.
D. $7,829.
20. Look at the Form 1040 you prepared for Benjamin and Olivia. What is the amount on Form 1040, Line 45?
A. $25,900.
B. $0.
C. $11,600.
D. $7,829.
21. Look at the Form 1040 you prepared for Benjamin and Olivia. What is the amount on Form 1040, Line 51?
A. $4,850.
B. $0.
C.
$4,000.
D. $7,829.
22. Look at the Form 1040 you prepared for Benjamin and Olivia. What is the amount on Form 1040, Line 54?
A. $5,000.
B. $0.
C. $4,000.
D. $7,829.
23. Look at the Form 1040 you prepared for Benjamin and Olivia. What is the amount on Form 1040, Line 55?
A. $5,566.
B. $0.
C. $5,000.
D. $4,409.
24. Look at the Form 1040 you prepared for Benjamin and Olivia. What is the amount on Form 1040, Line 57?
A. $56.
B.
$41.
C. $5,000.
D. $0
25. Look at the Form 1040 you prepared for Benjamin and Olivia. What is the amount on Form 1040, Line 61?
A. $4,450.
B. $4,409.
C. $5,566.
D. $7,829.
26. Look at the Form 1040 you prepared for Benjamin and Olivia. What is the amount on Form 1040, Line 62?
A. $5,244.
B. $41.
C. $11,362.
D. $7,829.
27. Look at the Form 1040 you prepared for Benjamin and Olivia. What is the amount on Form 1040, Line 65?
A. $0.
B. $5,244.
C. $5,000.
D. $7,829.
28. Look at the Form 1040 you prepared for Benjamin and Olivia. What is the amount on Form 1040, Line 72?
A. $0.
B. $11,362.
C. $5,000.
D. $7,829.
29. Look at the Form 1040 you prepared for Benjamin and Olivia. What is the amount on Form 1040, Line 73?
A. $6,953.
B.
$5,771.
C. $5,796.
D. $7,829.
30. Look at the Form 1040 you prepared for Benjamin and Olivia. What is the amount on Form 1040, Line 75?
A. $6,077.
B.
$11,362.
C. $0.
D. $7,829.
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.