ACCY 450/550 Project 3 Due: Sunday, August 1.2020 at 11:59pm Required: Complete a 2019 federal income tax return using the information that follows and 2019 tax forms. Be sure to include all needed forms and schedules so the tax return is complete. o Assemble your tax return as directed in the Form 1040 instructions under the heading "Assemble Your Return" and compile all pages of the tax return in that order into a single pdf. o Put your name in the upper right-hand corner of page 1 of Form 1040 General information regarding the taxpayer includes: The taxpayer has substantiation (eg..records, receipts) to support all transactions for the year. If there is an overpayment of tax, the taxpayer wants a refund check sent to her by mail. The taxpayer's itemized deductions for 2018 totaled $16,700, of which $3,500 was for state and local income tax. Make necessary assumptions for info not given in the problem but needed to complete the return. Seek guidance from form/schedule instructions, IRS Publications (including Publication 17), and your textbook. If you still can't find answers to your questions, please ask for help. Your solution should be your work alone - this is not a group project. Taxpayer Information Jenni L. Dane is a single mother who lives at 13071 Sterling Drive, Marquette, MI 49866. 1. Jenni earns $72,000 working as a counselor for the Marquette Public School District. Her 2019 Form W-2 shows appropriate amounts for Social Security and Medicare taxes were withheld from her paychecks. In addition, income tax withholdings for the year totaled $10,500 for Federal and $3,600 for state. . 2. Jenni has supported Jesse Voss (her widowed father) for several years, appropriately claiming him as a dependent for tax purposes. On December 27, 2018, Jesse suffered a massive stroke. The doctors did everything they could for Jesse, but he died in the intensive care unit of Riverwood Hospital on January 8, 2019. In January and February of 2019, Jenni paid the following bills on behalf of Jesse: medical expenses of $11.800 not covered by Medicare ($6,000 incurred in 2018 and $5,800 in 2019) and funeral expenses of $15,300. 3. In early December 2018, a friend advised Jenni to buy stock in Pioneer Aviation Inc. (PAI). At that time, PAI was in serious financial straits and was headed toward bankruptcy. Nevertheless, according to Jenni's friend, the value of the corporation's underlying assets was such that the shareholders were bound to recover considerably more than the current market price of $0.50 per share. Excited at the chance for a "sure" profit, on December 15, 2018, Jenni purchased 20,000 shares for $10,000. In September 2019, the trustee in bankruptcy announced that the stock was worthless and that even some of PAI's preferred creditors would not be paid. Since these shares were deemed worthless, there is no Form 1099-B for this disposition. 4. On June 14, 2019, Jenni sold 500 shares of Garnet Corporation for $17,500 ($35 per share). She owned 1,000 shares, acquired as follows: 500 shares on November 5, 2017, for $25 a share and 500 shares on April 5, 2018, for $30 a share. Jenni did not instruct her broker as to which shares to sell, so Form 1099-B for this sale reported $12,500 basis for these shares. 1 5. On June 7 and 8, 2019, Jenni held a garage sale to dispose of unwanted furniture, appliances, books, bicycles, clothes, and one boat (including trailer). Proceeds from the sale totaled $9.200. The estimated basis of the items sold is $25.500. All assets sold were used by the Jenni and her family for personal purposes. 6. In addition to the receipts previously noted, other 2019 receipts include: Income tax refunds for tax year 2018: Federal 800 State of Michigan Interest income (reported on separate Forms 1099-INT): State of Michigan general-purpose bonds 1.400 General Electric corporate bonds 1.100 Certificate of deposit at Marquette National Bank 900 Qualified dividends (Krist Energy, reported on Form 1099-DIV) 1,200 Cash gifts from Jenni's aunt & uncle 24.000 State lottery winnings reported on Form W2-G 1.000 190 7. Payments made for 2019 expenditures not mentioned elsewhere include: Medical Copayment portion of medical expenses 1,300 Dental (orthodontist) 1,200 Taxes State sales taxes 1,120 Property taxes on personal residence 3,800 Interest on home mortgage reported on Form 1098 4,200 Charitable contributions to Water's Edge Church, Marquette MI 3,600 schis Gambling wagers that did not result in winnings 1,300 8. Jenni has two sons who live with her: Ethan and Isaac. Both are full-time students. Ethan is an accomplished singer and earned $4,200 during the year performing at special events (e.g., weddings, anniversaries, civic functions). Ethan deposits his earnings in a savings account intended to help cover future college expenses. Isaac does not have a job. 9. Jenni holds no foreign financial accounts nor does she hold an virtual currencies. 10. Relevant Social Security numbers are noted below: Name Social Security Number Birth Date Jenni L. Dane 123-45-6781 08/14/1977 Jesse S. Voss 123-45-6784 03/12/1938 Ethan T. Dane 123-45-6788 09/13/2004 Isaac S. Dane 123-45-6789 07/20/2006 2 ACCY 450/550 Project 3 Due: Sunday, August 1.2020 at 11:59pm Required: Complete a 2019 federal income tax return using the information that follows and 2019 tax forms. Be sure to include all needed forms and schedules so the tax return is complete. o Assemble your tax return as directed in the Form 1040 instructions under the heading "Assemble Your Return" and compile all pages of the tax return in that order into a single pdf. o Put your name in the upper right-hand corner of page 1 of Form 1040 General information regarding the taxpayer includes: The taxpayer has substantiation (eg..records, receipts) to support all transactions for the year. If there is an overpayment of tax, the taxpayer wants a refund check sent to her by mail. The taxpayer's itemized deductions for 2018 totaled $16,700, of which $3,500 was for state and local income tax. Make necessary assumptions for info not given in the problem but needed to complete the return. Seek guidance from form/schedule instructions, IRS Publications (including Publication 17), and your textbook. If you still can't find answers to your questions, please ask for help. Your solution should be your work alone - this is not a group project. Taxpayer Information Jenni L. Dane is a single mother who lives at 13071 Sterling Drive, Marquette, MI 49866. 1. Jenni earns $72,000 working as a counselor for the Marquette Public School District. Her 2019 Form W-2 shows appropriate amounts for Social Security and Medicare taxes were withheld from her paychecks. In addition, income tax withholdings for the year totaled $10,500 for Federal and $3,600 for state. . 2. Jenni has supported Jesse Voss (her widowed father) for several years, appropriately claiming him as a dependent for tax purposes. On December 27, 2018, Jesse suffered a massive stroke. The doctors did everything they could for Jesse, but he died in the intensive care unit of Riverwood Hospital on January 8, 2019. In January and February of 2019, Jenni paid the following bills on behalf of Jesse: medical expenses of $11.800 not covered by Medicare ($6,000 incurred in 2018 and $5,800 in 2019) and funeral expenses of $15,300. 3. In early December 2018, a friend advised Jenni to buy stock in Pioneer Aviation Inc. (PAI). At that time, PAI was in serious financial straits and was headed toward bankruptcy. Nevertheless, according to Jenni's friend, the value of the corporation's underlying assets was such that the shareholders were bound to recover considerably more than the current market price of $0.50 per share. Excited at the chance for a "sure" profit, on December 15, 2018, Jenni purchased 20,000 shares for $10,000. In September 2019, the trustee in bankruptcy announced that the stock was worthless and that even some of PAI's preferred creditors would not be paid. Since these shares were deemed worthless, there is no Form 1099-B for this disposition. 4. On June 14, 2019, Jenni sold 500 shares of Garnet Corporation for $17,500 ($35 per share). She owned 1,000 shares, acquired as follows: 500 shares on November 5, 2017, for $25 a share and 500 shares on April 5, 2018, for $30 a share. Jenni did not instruct her broker as to which shares to sell, so Form 1099-B for this sale reported $12,500 basis for these shares. 1 5. On June 7 and 8, 2019, Jenni held a garage sale to dispose of unwanted furniture, appliances, books, bicycles, clothes, and one boat (including trailer). Proceeds from the sale totaled $9.200. The estimated basis of the items sold is $25.500. All assets sold were used by the Jenni and her family for personal purposes. 6. In addition to the receipts previously noted, other 2019 receipts include: Income tax refunds for tax year 2018: Federal 800 State of Michigan Interest income (reported on separate Forms 1099-INT): State of Michigan general-purpose bonds 1.400 General Electric corporate bonds 1.100 Certificate of deposit at Marquette National Bank 900 Qualified dividends (Krist Energy, reported on Form 1099-DIV) 1,200 Cash gifts from Jenni's aunt & uncle 24.000 State lottery winnings reported on Form W2-G 1.000 190 7. Payments made for 2019 expenditures not mentioned elsewhere include: Medical Copayment portion of medical expenses 1,300 Dental (orthodontist) 1,200 Taxes State sales taxes 1,120 Property taxes on personal residence 3,800 Interest on home mortgage reported on Form 1098 4,200 Charitable contributions to Water's Edge Church, Marquette MI 3,600 schis Gambling wagers that did not result in winnings 1,300 8. Jenni has two sons who live with her: Ethan and Isaac. Both are full-time students. Ethan is an accomplished singer and earned $4,200 during the year performing at special events (e.g., weddings, anniversaries, civic functions). Ethan deposits his earnings in a savings account intended to help cover future college expenses. Isaac does not have a job. 9. Jenni holds no foreign financial accounts nor does she hold an virtual currencies. 10. Relevant Social Security numbers are noted below: Name Social Security Number Birth Date Jenni L. Dane 123-45-6781 08/14/1977 Jesse S. Voss 123-45-6784 03/12/1938 Ethan T. Dane 123-45-6788 09/13/2004 Isaac S. Dane 123-45-6789 07/20/2006 2