Advanced Scenario 7: Gilbert and Tara Washington Directions Using the tax software, complete the tax return, including Form 1040 and all appropriate forms, schedules, or worksheets. Answer the questions following the scenario. Note: When entering Social Security numbers (SSNs) or Employer Identification Numbers (EINs), replace the Xs as directed, or with any four digits of your choice. Interview Notes Gilbert is an elementary school teacher at a public school. Gilbert and Tara are married and choose to file Married Filing Jointly on their 2021 tax return. Gilbert worked a total of 1,280 hours in 2021. During the school year, he spent $500 on unreimbursed classroom expenses. Tara retired in 2018 and began receiving her pension on October 1st of that year. She explains that this is a joint and survivor annuity. She has already recovered $1,013 of the cost of the plan. Gilbert settled with his credit card company on an outstanding bill and brought the Form 1099-C to the site. They arent sure how it will impact their tax return for tax year 2021. The Washingtons determined that they were solvent as of the date of the canceled debt. Tara won $3,000 gambling at a casino and had additional lottery winnings of $150. Tara has documented casino losses of $1,500. Their son, Chandler, is in his second year of college pursuing a bachelors degree in Logistics at a qualified educational institution. He received a scholarship and the terms require that it be used to pay tuition. Box 2 was not filled in and Box 7 was not checked on his Form 1098-T for the previous tax year. The Washingtons provided Form 1098-T and an account statement from the college that included additional expenses. The Washingtons paid $450 for books required for Chandlers courses. This information is also included on the College statement of account. Chandler does not have a felony drug conviction. The Washingtons received the third Economic Impact Payment (EIP3) in the amount of $4,200 in 2021. They are all U.S. citizens with valid Social Security numbers. 82 Advanced Scenarios Advanced Scenarios 83 Catalog Number 52121E www .irs .gov Form 13614-C (Rev . 10-2021) Form 13614-C (October 2021) Department of the Treasury - Internal Revenue Service Intake/Interview & Quality Review Sheet OMB Number 1545-1964 You will need: Tax Information such as Forms W-2, 1099, 1098, 1095. Social security cards or ITIN letters for all persons on your tax return. Picture ID (such as valid driver's license) for you and your spouse. Volunteers are trained to provide high quality service and uphold the highest ethical standards. To report unethical behavior to the IRS, email us at wi.voltax@irs.gov Part I Your Personal Information (If you are filing a joint return, enter your names in the same order as last years return) 1 . Your first name M .I . Last name Best contact number Are you a U .S . citizen? Yes No 2 . Your spouses first name M .I . Last name Best contact number Is your spouse a U .S . citizen? Yes No 3 . Mailing address Apt # City State ZIP code 4 . Your Date of Birth 5 . Your job title 6 . Last year, were you: a . Full-time student Yes No b . Totally and permanently disabled Yes No c . Legally blind Yes No 7 . Your spouses Date of Birth 8 . Your spouses job title 9 . Last year, was your spouse: a . Full-time student Yes No b . Totally and permanently disabled Yes No c . Legally blind Yes No 10 . Can anyone claim you or your spouse as a dependent? Yes No Unsure 11 . Have you, your spouse, or dependents been a victim of tax related identity theft or been issued an Identity Protection PIN? Yes No 12 . Provide an email address (optional) (this email address will not be used for contacts from the Internal Revenue Service) Part II Marital Status and Household Information 1 . As of December 31, 2021, what was your marital status? Never Married (This includes registered domestic partnerships, civil unions, or other formal relationships under state law) Married Yes No b . Did you live with your spouse during any part of the last six months of 2021? Yes No a . If Yes, Did you get married in 2021? Divorced Date of final decree Legally Separated Date of separate maintenance decree Widowed Year of spouses death 2 . List the names below of: everyone who lived with you last year (other than your spouse) anyone you supported but did not live with you last year To be completed by a Certified Volunteer Preparer If additional space is needed check here and list on page 3 Please complete pages 1-4 of this form. You are responsible for the information on your return. Please provide complete and accurate information. If you have questions, please ask the IRS-certified volunteer preparer. Name (first, last) Do not enter your name or spouses name below (a) Date of Birth (mm/dd/yy) (b) Relationship to you (for example: son, daughter, parent, none, etc) (c) Number of months lived in your home last year (d) US Citizen (yes/no) (e) Resident of US, Canada, or Mexico last year (yes/no) (f) Single or Married as of 12/31/21 (S/M) (g) Full-time Student last year (yes/no) (h) Totally and Permanently Disabled (yes/no) (i) Is this person a qualifying child/relative of any other person? (yes/no) Did this person provide more than 50% of his/ her own support? (yes,no,n/a) Did this person have less than $4,300 of income? (yes,no,n/a) Did the taxpayer(s) provide more than 50% of support for this person? (yes/no/n/a) Did the taxpayer(s) pay more than half the cost of maintaining a home for this person? (yes/no) GILBERT WASHINGTON YOUR PHONE # TARA WASHINGTON 123 TAYLOR AVENUE YOUR CITY YS YOUR ZIP 5/05/1964 TEACHER 03/11/1956 RETIRED CHANDLER WASHINGTON 8/06/2002 SON 12 YES YES S YES NO Advanced Scenarios 84 Page 2 Catalog Number 52121E www .irs .gov Form 13614-C (Rev . 10-2021) Check appropriate box for each question in each section Yes No Unsure Part III Income Last Year, Did You (or Your Spouse) Receive 1 . (B) Wages or Salary? (Form W-2) If yes, how many jobs did you have last year? 2 . (A) Tip Income? 3 . (B) Scholarships? (Forms W-2, 1098-T) 4 . (B) Interest/Dividends from: checking/savings accounts, bonds, CDs, brokerage? (Forms 1099-INT, 1099-DIV) 5 . (B) Refund of state/local income taxes? (Form 1099-G) 6 . (B) Alimony income or separate maintenance payments? 7 . (A) Self-Employment income? (Form 1099-MISC, 1099-NEC, cash, virtual currency, or other property or services) 8 . (A) Cash/check/virtual currency payments, or other property or services for any work performed not reported on Forms W-2 or 1099? 9 . (A) Income (or loss) from the sale or exchange of Stocks, Bonds, Virtual Currency or Real Estate? (including your home) (Forms 1099-S,1099-B) 10 . (B) Disability income? (such as payments from insurance, or workers compensation) (Forms 1099-R, W-2) 11 . (A) Retirement income or payments from Pensions . Annuities, and or IRA? (Form 1099-R) 12 . (B) Unemployment Compensation? (Form 1099G) 13 . (B) Social Security or Railroad Retirement Benefits? (Forms SSA-1099, RRB-1099) 14 . (M) Income (or loss) from Rental Property? 15 . (B) Other income? (gambling, lottery, prizes, awards, jury duty, virtual currency, Sch K-1, royalties, foreign income, etc .) Yes No Unsure Part IV Expenses Last Year, Did You (or Your Spouse) Pay 1 . (B) Alimony or separate maintenance payments? If yes, do you have the recipients SSN? Yes No 2 . Contributions or repayments to a retirement account? IRA (A) 401K (B) Roth IRA (B) Other 3 . (B) College or post secondary educational expenses for yourself, spouse or dependents? (Form 1098-T) 4 . Any of the following? (A) Medical & Dental (including insurance premiums) (A) Mortgage Interest (Form 1098) (A) Taxes (State, Real Estate, Personal Property, Sales) (B) Charitable Contributions 5 . (B) Child or dependent care expenses such as daycare? 6 . (B) For supplies used as an eligible educator such as a teacher, teachers aide, counselor, etc .? 7 . (A) Expenses related to self-employment income or any other income you received? 8 . (B) Student loan interest? (Form 1098-E) Yes No Unsure Part V Life Events Last Year, Did You (or Your Spouse) 1 . (A) Have a Health Savings Account? (Forms 5498-SA, 1099-SA, W-2 with code W in box 12) 2 . (A) Have credit card, student loan or mortgage debt cancelled/forgiven by a lender or have a home foreclosure? (Forms 1099-C, 1099-A) 3 . (A) Adopt a child? 4 . (B) Have Earned Income Credit, Child Tax Credit or American Opportunity Credit disallowed in a prior year? If yes, for which tax year? 5 . (A) Purchase and install energy-efficient home items? (such as windows, furnace, insulation, etc .) 6 . (A) Receive the First Time Homebuyers Credit in 2008? 7 . (B) Make estimated tax payments or apply last years refund to this years tax? If so how much? 8 . (A) File a federal return last year containing a capital loss carryover on Form 1040 Schedule D? 9 . (A) Have health coverage through the Marketplace (Exchange)? [Provide Form 1095-A] 10 . (B) Receive an Economic Impact Payment (stimulus) in 2021? 11 . (B) Receive Advanced Child Tax Credit payments? Advanced Scenarios 89 90 Advanced Scenarios Advanced Scenario 7

a. What is the taxable portion of Taras pension from Oak Enterprises using the simplified method? a. $0 b. $17,862 c. $18,035 d. $18,485

b. None of Taras social security income is taxable. a. True b. False

c. What is the total amount of other income reported on the Washingtons Form 1040, Schedule 1 ? a. $3,900 b. $3,150 c. $2,400 d. $750