Allen and Janet Doe live at 42 Main Street in Boston, MA 02124. They are filing as a married couple.

Allen's social security number is 087-65-8349 and Janet’s is 083-49-8101. They are under the age of 65.

They have no dependents. They take the standard deduction and do not itemize their deductions.

Facts

Allen and Janet received the first Economic Impact Payment of $2400.They also received the second Economic Impact Payment of $1200.

Allen and Janet are employed as high school teachers. Their wages for 2020 were $100,000. They had $2,000 of federal income tax withholding. In 2020, they paid $7,900 in federal estimated tax payments. They do not contribute to the Presidential Election Campaign nor do they have any dealings in virtual currency, otherwise known as “Bitcoin.”

Here is what they did not include on their original return that was filed:

1. $300 of interest from Eastern Savings Bank.

Required:

1. Prepare a Form 1040-X tax return. You only need to submit the Form 1040-X, pages 1 and 2.

You can calculate the tax liability using the tax table; you do not need the Schedule D Tax worksheet.

As a reminder, work only with the facts and circumstances that are presented in this case study.